Russia: Secondary Sanctions Are Hurting Export Revenues, Oil Payments

Russian oil cargo Pure Point, carrying crude oil, is anchored at a port in Karachi, Pakistan June 13, 2023. REUTERS/Akhtar Soomro/File Photo
Russian oil cargo Pure Point, carrying crude oil, is anchored at a port in Karachi, Pakistan June 13, 2023. REUTERS/Akhtar Soomro/File Photo
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Russia: Secondary Sanctions Are Hurting Export Revenues, Oil Payments

Russian oil cargo Pure Point, carrying crude oil, is anchored at a port in Karachi, Pakistan June 13, 2023. REUTERS/Akhtar Soomro/File Photo
Russian oil cargo Pure Point, carrying crude oil, is anchored at a port in Karachi, Pakistan June 13, 2023. REUTERS/Akhtar Soomro/File Photo

Expanded sanctions on Russia and enhanced pressure on countries that Moscow considers friendly are hurting Russian firms' export revenues and creating oil payment issues, the Bank of Russia said on Friday.

The United States has hit Russia with waves of Ukraine-related sanctions and threatened secondary sanctions on foreign banks aiding transactions with Moscow. That has prompted some Chinese banks to limit dealings with Russian companies, Reuters reported.

"The widening of sanctions and pressure on friendly countries leads to companies' reduced export revenue," the central bank said in a report on financial stability in a section titled "main vulnerabilities.”

Russia distinguishes between countries that imposed sanctions over its actions in Ukraine and those that did not by calling them 'unfriendly' and 'friendly'.

"Unfriendly countries are hindering not only the sale of hydrocarbons, but also the realization of major investment projects," the bank said. "Against the backdrop of secondary sanctions, supply chains and payment mechanisms are becoming more complicated, which leads to higher import prices and supply disruptions."

The threat of secondary sanctions has also slowed Russian banks' increasing the number of correspondent accounts in friendly jurisdictions, the central bank said. Since the start of 2022, the number of correspondent accounts in US dollars and euros has dropped by 55%, it said.

US Treasury Secretary Janet Yellen on Tuesday said Washington's new authority to hit banks with secondary sanctions if they aid Russian military-related transactions had helped to frustrate, opens new tab Russia's efforts to procure goods needed for the conflict in Ukraine, but that more work was needed.



Abu Dhabi's MAIR Group to List in Abu Dhabi Next Month

Abu Dhabi's MAIR Group to List in Abu Dhabi Next Month
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Abu Dhabi's MAIR Group to List in Abu Dhabi Next Month

Abu Dhabi's MAIR Group to List in Abu Dhabi Next Month

Abu Dhabi-based MAIR Group, an investment firm active in sectors including food retail and commercial real estate, said on Thursday it would list on the local bourse next month.

The company, which operates over 100 stores in the United Arab Emirates (UAE) under the ADCOOP and SPAR brands, said in a statement the listing on the Abu Dhabi securities exchange (ADX) would take place on Dec. 9.

It did not disclose the amount of stock shareholders and employees plan to sell through the so-called direct listing, which takes place when a company offers shares to the public without going through a bank-backed initial public offering, Reuters reported.

As MAIR prepares to list "we are ready to amplify our impact, strengthen our foundations, and invite stakeholders to join our journey," Managing Director and CEO Nehayan Al Ameri said.

MAIR, which also manages more than 12 shopping centers through its commercial real estate division, booked revenues of 1.2 billion dirhams ($326.7 million) in the first half of 2024.

Last year, it distributed 135 million dirhams in dividends, equal to 12.11% of the share capital, to its over 12,000 shareholders.