The US and its European partners have also they would impose restrictions on Russia’s central bank to limit its ability to support the rouble and finance Moscow’s attacks.
Western allies have announced sweeping new sanctions against Moscow, including kicking key Russian banks off the main global payments system.
The US and its European partners also said on Saturday they would impose curbs on Russia’s central bank to limit its ability to support the rouble and finance Moscow’s attacks.
“…we are resolved to continue imposing costs on Russia that will further isolate Russia from the international financial system and our economies,” the Western allies said.
“We will implement these measures within the coming days,” according to a joint statement from the United States, France, Germany, Canada, Italy, Britain and the European Commission.
The allies said they committed to “ensuring that selected Russian banks are removed from the SWIFT (Society for Worldwide Interbank Financial Telecommunication) messaging system”.
They did not name the banks but an EU diplomat said some 70 percent of the Russian banking market would be affected.
The allies had initially shied away from such a move largely because of concern about the impact on their own economies.
Joint Statement by the 🇪🇺European Commission, 🇫🇷France, 🇩🇪Germany, 🇮🇹Italy, the 🇬🇧United Kingdom, 🇨🇦Canada, and the 🇺🇸United States on further restrictive economic measures against Russia
The fresh move deals a blow to Russia’s trade and makes it harder for its companies to do business.
The French finance minister had earlier called a “financial nuclear weapon” because of the damage it would inflict on the Russian economy.
SWIFT is a secure messaging network that facilitates rapid cross-border payments, making it a crucial mechanism for international trade.
Sanctions on Russia’s central bank could limit President Vladimir Putin’s use of his more than $630 billion in international reserves, widely seen as insulating Russia from some economic harm.
The new measures will prevent Russia from “using its war chest”, according to Ursula von der Leyen, president of the European Commission, the European Union’s executive.
Clay Lowery, executive vice president for the Institute of International Finance, said the new sanctions “will most likely exacerbate ongoing bank runs and dollaristion, causing a sharp sell-off, and a drain on reserves”.
But because Russia’s large banks are integrated into the global financial system, new sanctions imposed on them could have a spillover effect, hurting trading partners in Europe and elsewhere.
Ukrainian Prime Minister Denys Shmygal said in a Twitter post early on Sunday: “Thanks to our friends … for the commitment to remove several Russian banks from SWIFT”.
The Ministry of Finance has disclosed that the state received USD 802.2 million in revenue during the first four months of this year, marking a significant 4.2% increase compared to the same period last year.
This revenue breakdown comprises USD 660 million in tax revenue, USD 129.4 million in non-tax revenue, and USD 5 million in aid to administration.
Tax revenue is primarily derived from Import Duty, Business and Property Tax (BPT), and Goods and Service Tax (GST), with figures as follows:
– Import Duty: USD 60.3 million – BPT: USD 168.2 million – GST: USD 375.2 million – Green Tax: USD 27 million – Airport Service Charge and Departure Tax: USD 25.1 million
Moreover, financial data indicates that the current administration has notably reduced overall expenses compared to the previous year.
Total government expenditures for the first four months of this year stand at USD 925.1 million, a significant decrease from last year’s USD 1.04 billion. This includes USD 724.6 million in recurrent expenses and USD 194.1 million in capital expenditure. Recurrent expenses prominently consist of USD 284.7 million in salaries and allowances and USD 433.4 million in administrative expenses, while capital expenditures primarily involve infrastructural development projects.
Commonwealth Enterprise and Investment Council (CWEIC) has announced decision to establish its office in the Maldives, and appoint President Dr. Mohamed Muizzu’s Principal Advisor Mohamed Ali Janah as its Country Chair.
CWEIC in a statement on Thursday, said the office will be established to connect the Maldives government with international investors and businesses.
The Maldives hub office of CWEIC will play a vital role in seeking prospective investment opportunities from all 56-member nations of the Commonwealth. The office will also enhance strategic alliances and partnerships between these countries and the Maldivian government.
Veteran entrepreneur, Janah boasts of over 30 years of business relations with the Middle East.
An agreement has been signed by the Maldivian administration with UAE’s International Free Zone Authority (IFZA) to develop Special Economic Zones (SEZ) in the Maldives.
The agreement, officially co-signed by Minister of Economic Development and Trade Mohamed Saeed and IFZA Chairman Martin Gregers Pedersen during a special ceremony, marks a significant milestone in economic development.
Speaking at the ceremony, Minister Saeed emphasized the timeline for finalizing the agreement, committing to reach a consensus within the next four months. As part of the agreement, Fonadhoo in Kaafu Atoll will be transformed into a financial hub, featuring a new financial center and a bridge connecting Male’ and Hulhule. IFZA will bear the expenses for these developments.
The Ministry of Economic Development and Trade further highlighted plans for the Economic Gateway project in Ihavandhippolhu, aiming to attract investors with IFZA’s expertise. Addressing the attendees, Chairman Pedersen expressed confidence in the success of the project, underscoring collaborations with investors to further enhance opportunities in the Maldives.
The development of SEZs remarkably aligns with the President Dr. Mohamed Muizzu’s vision to diversify the economy and stimulate financial growth. The Maldivian administration is optimistic about attracting future investments and positioning the country as a desirable destination for business opportunities.