Bank for International Settlements suspends Central Bank of Russia

Russia
has been suspended from the International Settlements (BIS) as a result of
Western sanctions, the central bank umbrella group said on Thursday.

Also Read: List of all companies that pulled out of Russia amid Ukraine crisis

“The
BIS is following international sanctions against the central bank of Russia, as
applicable, and will not be an avenue for sanctions to be circumvented,” a
spokesperson told AFP.

“The
access of Central Bank of Russia to all BIS services, meetings and other BIS
activities has been suspended,” she added.

Also Read: US VP Kamala Harris calls for probe into Russian ‘war crimes’ in Ukraine

Following
all international sanctions on Russia, the Switzerland-based institution had
taken the decision, the spokesperson added.

Goldman
Sachs shuts down operations

Goldman
Sachs, meanwhile, has decided to shut down operations in Russia approximately
two weeks after the start of a Moscow-led invasion of Ukraine, the company
announced Thursday.

Also Read: United on Ukraine, European Union tackles the devil in details at summit

The
departure marks Wall Street’s first big exit from Russia and arrives after many
other large companies and retailers decided to do shut down their operations. 

Visa announced on Saturday that it will work with its Russian clients and partners to immediately cease all transactions in the coming days, and Visa cards issued outside of Russia will no longer work inside the country.

Also Read: How UK sanctions on Chelsea owner Roman Abramovich will affect the club

In response to the invasion, Mastercard stated Saturday in a statement that it will halt operations in Russia. American Express followed suit on Sunday.

Both KPMG and PricewaterhouseCoopers announced on Sunday that they would be terminating their relationships with their Russia-based member firms. KPMG announced its departure from Belarus as well.

Also Read: UK sanctions Chelsea boss Abramovich, Rosneft CEO Sechin

“Goldman
Sachs is winding down its business in Russia in compliance with regulatory and
licensing requirements,” a company spokesperson told NPR in a statement.
“We are focused on supporting our clients across the globe in managing or
closing out pre-existing obligations in the market and ensuring the wellbeing
of our people.”

Bank
of Russia takes unprecedented measures

As
the western countries imposed economic sanctions on Russia for invading Ukraine
and destroying the country with bombing and shelling, the Bank of Russia was
forced to take unprecedented measures, including capital controls, to shore up
the struggling economy and the rubble.

The
central bank more than doubled its main policy rate to 20 per cent last week as
it sought to stop the haemorrhaging of the ruble, but to no avail.

Also Read: Ukraine-Russia talks fail, no agreement on ceasefire or evacuation corridor

The
Russian currency has lost around 40 per cent of its value since the start of
the year.

In
another sign of looming difficulties, the bank also asked lenders not to
release their financial statements as of February.