Financial institutions in Canada are now prohibited from transacting with Russia's central bank, which is a target of Western sanctions aimed at punishing Russian President Vladimir Putin for invading Ukraine.
In a tweet sent out on Monday, Prime Minister Justin Trudeau announced the ban. He described the action against the Russian central bank as aimed at eliminating its ability to deploy Russia's international currency reserves and further limiting Putin's ability to fund his war of choice.
Following numerous rounds of sanctions imposed in recent days over Russia's invasion of Ukraine, the Russian currency plunged against the US dollar as markets opened on Monday. So far, the collapse has resulted in a 30% drop in the Russian currency's value against the US dollar.
Following an agreement among European and North American partners, Russia was cut off from SWIFT over the weekend, dealing a major blow to Putin's administration. The system makes international financial transactions easier.
The decision to prohibit transactions with the Russian central bank coincides with similar restrictions taken by allies. The US issued a parallel restriction on Monday, which Reuters called a "cruel blow" to Russia's economy. The US sanctions also prohibit dealings with Russia's finance ministry and national wealth fund and are projected to raise Russian inflation, suffocate the country's purchasing power, and deter investment.
According to a US official, the steps "immobilized" any assets held by Russia's central bank in the US, limiting Russia's ability to access hundreds of billions of dollars in assets.
-Jake Moore
https://globalnews.ca/news/8650244/russia-invasion-ukraine-canadian-banks-barred-from-business/
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