Due to the threat of account closures, British companies are wary of trading with Ukraine
Due to russia's occupation of part of Ukraine, British banks like HSBC and Santander UK may close business accounts, citing sanctions against russia
Banks are forcibly closing accounts of British firms trading with Ukrainian partners due to concerns about anti-russian sanctions and money laundering. This hinders broader efforts to support Ukraine's war-torn economy, business leaders warn.
This is reported by Politico.
In a letter to the UK's Chancellor, Andrew Griffith, the co-chair of the British-Ukrainian Chamber of Commerce (BUCC), Bate Toms, stated that British firms are increasingly "afraid to trade with Ukraine from the UK" due to the risk of becoming bankrupt. The letter, dated 26 July and also sent to the UK's Minister for Business and Trade, Nusrat Ghani, mentions numerous complaints from firms whose bank accounts were closed and their attempts to open accounts were declined due to conducting business in Ukraine.
"Conducting even one Ukrainian transaction can lead to an account being closed," writes Toms. "UK banks generally refuse to open accounts if any Ukrainian trade is contemplated."
Banks insist they must adhere to their legislative and regulatory obligations, including those related to enforcing Western sanctions against russia, which currently occupies parts of Ukraine. They argue that transactions with regions of Ukraine not controlled by the government are complicated, and delays may arise during checks. They maintain that trading with Ukraine is not entirely prohibited.
Toms, however, wants the government's recent review of the removal process from bank accounts of Politically Exposed Persons (PEPs), prompted by a dispute involving former Brexit Party leader Nigel Farage with the upscale bank Coutts, to also consider how British banks handle business transactions with Ukraine.
"If trade from the UK with Ukraine is not possible for SMEs [small and medium-sized enterprises], the UK's and Ukraine’s economies will suffer, harming Ukraine’s ability to fund its defense and making Ukraine even more dependent on foreign assistance," he warned.
Background. Mind previously reported that there had been a strike at a UK factory producing Storm Shadow and Brimstone missiles intended for Ukraine.
If you have read this article to the end, we hope that means it was useful for you.
We work to ensure that our journalistic and analytical work is of high quality, and we strive to perform it as competently as possible. This also requires financial independence. Support us for only UAH 196 per month.
Become a Mind subscriber for just USD 5 per month and support the development of independent business journalism!
You can unsubscribe at any time in your LIQPAY account or by sending us an email: [email protected]
