ALBAWABA — The United Arab Emirates is studying "available options" after a Russian bank given a license to operate in the Gulf state was hit by a new wave of sanctions by the United States.
MTS Bank, approved for its license last year, was one of more than 200 entities and individuals targeted on Friday by the fresh sanctions on the first anniversary of Russia's invasion of Ukraine.
“The United States will implement sweeping sanctions against key sectors that generated revenue for Putin, go after more Russian banks, Russia’s defense and technology industry, and actors in third party countries that are attempting to backfill and evade our sanctions,” White House Press Secretary Karine Jean Pierre announced on Friday.
The Central Bank of the U.A.E. said MTS had earned its licence because it "fulfilled the criteria for licensing branches of foreign banks" and that it "contributed to supporting legitimate trade between the two countries and servicing the Russian community in the U.A.E.".
The CBUAE said an appropriate decision that would take into consideration the obligations incurred by the branch during the previous period would be taken in due course.
The latest measures were announced three weeks after Brian E. Nelson, U.S. under secretary for terrorism and financial intelligence, visited the U.A.E. for talks with authorities including the CBUAE.
"The Central Bank is studying now the available options regarding the new status of the bank and appropriate decision will be taken in due course, considering the obligations incurred by the branch during the previous period," the Emirates News Agency said in a statement.
Nelson also warned countries and corporations that do business with entities subjected to U.S. sanctions could lose access to G7 markets as Washington sought to increase pressure on Turkiye and the U.A.E to enforce US-imposed sanctions, noting continued warnings and sanctions over the “poor sanctions compliance” in both countries.
While the U.A.E. remains a significant U.S. security and economic partner, contributing to selective U.S. enforcement of sanctions regarding Russia in the Gulf emirate, Washington has previously imposed sanctions on U.A.E.-based companies over Iran and Russia-related sanctions evasion.
The U.A.E., particularly its financial hub Dubai, has attracted large numbers of Russian professionals and businesspeople fleeing the impact of Western sanctions, with Russian air passenger traffic into Dubai doubling last year to 1.9 million as the U.A.E. maintained a neutral stance towards Russia's invasion of Ukraine.
"Over the past year, we have taken actions with a historic coalition of international partners to degrade Russia’s military-industrial complex and reduce the revenues that it uses to fund its war, " Janet Yellen, U.S. treasury secretary, said in a statement.
"Our sanctions have had both short-term and long-term impact, seen acutely in Russia’s struggle to replenish its weapons and in its isolated economy. Our actions today with our G7 partners show that we will stand with Ukraine for as long as it takes," Yellen added.
According to the White House, early 90 companies in Russia, China and other countries will be placed on the U.S. Commerce Department’s entity list for sanctions evasion in order to prevent the companies from buying semiconductors, software or other technologies manufactured in the U.S. or with American intellectual property.
