Leong Mun Wai

Financial Risks Faced by Singaporean Companies in Russia

This was a written Parliamentary Question sent to Parliament by Mr Leong Mun Wai on 5th April 2022 and its response

Mr Leong Mun Wai asked the Minister for Trade and Industry whether the Ministry can provide a summary of the financial risks faced by Singaporean companies in Russia today, such as those due to sanctions, decline in the Russian rouble and difficulty in making cross-border payments.

Mr Gan Kim Yong (Minister for Trade and Industy): Due to sanctions, restrictions, and uncertainties in the Russian economy, Singapore companies operating in Russia may face foreign exchange losses and challenges in cross-border transactions, which could impact their cash flows and financial performance.

The sanctions and restrictions imposed on Russia by Singapore are specific and targeted. They are aimed at constraining Russia’s capacity to conduct war against Ukraine. They prohibit transactions with four Russian banks and the financing of military goods and some dual-use goods for offensive cyber operations that are also subject to export controls in Singapore.

Singapore’s financial institutions and companies also have to manage the legal and operational risks from infringing sanctions imposed by several other jurisdictions on Russia where the sanctions have extra-territorial impact.

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