ANNOUNCEMENT 15 Mar 2022

In March 2022, the Export Finance agency of the United Kingdom (UKEF) announced that the UK will no longer provide government-backed export finance to Russia and Belarus.

NUMBER OF INTERVENTIONS

2

  • 0 harmful
  • 0 neutral
  • 2 liberalising

SOURCE

Export Finance agency of the United Kingdom (UKEF), Press Release, “UK cuts off export finance support to Russia and Belarus”. Available at: https://www.gov.uk/government/news/uk-cuts-off-export-finance-support-to-russia-and-belarus

Inception date: 15 Mar 2022 | Removal date: open ended

Trade finance

On 15 March 2022, the Export Finance agency of the United Kingdom (UKEF) announced that the UK will no longer provide new guarantees, loans and insurance for exports to Russia and Belarus. The decision is taken in response to Russian and Belarusian aggression towards Ukraine.

According to the announcement from UKEF, “without government export credit support, any financial backing from the private sector to the region is virtually impossible.”

In this context, International Trade Secretary Anne-Marie Trevelyan said: “Our severe economic sanctions are working. We are tightening the screws on Russia to ensure they feel real consequences for their illegal military invasion. At the same time, we are doing everything we can to ensure Ukraine remains open to the world. We have signed an international treaty so that UK supplies can reach Ukraine and strengthen their defences, and UK Export Finance – our first-class export credit agency is supporting them with this.”

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Inception date: 15 Mar 2022 | Removal date: open ended

Financial assistance in foreign market

On 15 March 2022, the Export Finance agency of the United Kingdom (UKEF) announced that it will stop providing government-backed financing for transactions in Russia and Belarus. This includes all types of financing options including guarantees, loans and insurance towards these countries. With the implementation of this measure, UK businesses will not receive any financial support from UKEF in their transactions with their subsidiaries as well as in new investments in these countries. UK government announced this measure in response to Russia’s invasion of Ukraine, and the role of Belarus in this invasion.

In this context, Exports Minister Mike Freer said: “We are here to support UK businesses and give them the tailored advice they need to best respond to the unprecedented and complicated situation in Ukraine. It’s heartening to see our business community step up and support Ukraine through this rapid increase in export applications to help citizens get the vital goods they depend on at this horrendous time. I advise any businesses with questions about operations in Ukraine, or Russia and Belarus to contact our Export Support Service and get the support they need.”

 
 
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