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UAE banks have introduced restrictions on financial transactions with Russia

Banks in the United Arab Emirates (UAE) have introduced restrictions on financial transactions with Russia due to fears of sanctions. According to information published by the Vedomosti newspaper and based on comments from businessmen working in the UAE, as well as a representative of the Business Russia association, Emirati financial institutions have currently stopped accepting funds from Russia and do not make payments in the opposite direction. Moreover, the ongoing practice of closing the accounts of companies owned by Russian citizens is indicated.

The process of restrictions began in September 2023, when large UAE banks began to actively close accounts associated with Russian passports. At the same time, smaller banking institutions continued to conduct transactions, but for an additional commission. The situation is complicated for those who are trying to open new accounts in the largest banks - even with the preliminary consent of the manager, any check may lead to refusal.

The article notes that this policy towards Russian clients is associated with the high share of foreign shareholders in large Emirates banks. In the context of the deteriorating situation with foreign trade settlements, as noted by the Chairman of the Bank of Russia Elvira Nabiullina, the Russian side is actively looking for ways to solve the problems that have arisen. Restrictive measures taken by UAE banks threaten the financial transactions of Russian entrepreneurs and companies in the region, which requires the search for alternative solutions to ensure the stability of foreign economic activity.

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