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UK cuts export support to Russia and Belarus – POLITICO

LONDON – The UK is cutting all export support to companies hoping to do business with Russia and Belarus in the wake of the Ukraine invasion.

UK Export Finance (UKEF), a branch of the British government that provides guarantees and insurance to companies looking to invest in or send goods overseas, told POLITICO it had turned off the faucet. The government is also banning the export of luxury goods to Russia.

England also has cut Russia and Belarus from preferential tariffs and has announced a list of goods worth more than £900 million – including vodka – that will face an additional 35 per cent tax.

UKEF has poured £191m into exports to Russia since 2014, when the Kremlin annexed Crimea, according to analysis from the Labor Party.

International Trade Secretary Anne-Marie Trevelyan said the government was “tightening the screws on Russia to make sure it feels the real consequences of its illegal military invasion.”

Former Shadow Trade Secretary Emily Thornberry, who questioned whether UK Export Finance would change its approach to Russia, welcomed the move.

“I ask these questions because the UK’s Export Finance Organization has an unfortunate history of supporting transactions they shouldn’t be and being too slow to react to changing circumstances. change. Unfortunately, that has been proven again in relation to Russia,” she said.

“I’m glad UKEF has now addressed my concerns by changing their insurance policy, but we still need to know if taxpayers will have to bill their previous transactions with Russian companies and which ministers signed the agreements. ”

Among the projects UK Export Finance has supported in Russia since 2014 are £294,269 in bond support and £1.5 million in export working capital for gas detection equipment for Trolex Limited, and over £60 million in buyer credit and over £7.6 million in supplier credit financing to Joy Global for mining equipment.

It is not clear how much UK Export Finance will lose due to sanctions on Russia.

While the UK’s Export Finance Authority has cut support for exports to Russia and Belarus, it is maintaining £3.5 billion to support exports to Ukraine.

Trevelyan said the UK is doing “everything we can to make sure Ukraine remains open to the world. We have signed an international treaty so that UK supplies can reach Ukraine and bolster their defenses, and UK Export Finance – the first-class export credit agency our best – are assisting them in this”.

The changes mark the UK’s latest move in announced sanctions against Russia and Belarus since the invasion began last month.

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Fry Electronics Team

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