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Finance firms have recently been banned from dealing with five Russian banks and Jersey stands ready to impose further sanctions against Russia-linked businesses and individuals if the country invades Ukraine, according to the External Relations Minister.
Like most of Europe, the island has Russian assets held and administered by trust, fund and other financial services businesses, Senator Ian Gorst added, but these providers were well-practised in following international rules and regulations.
During a Scrutiny Panel hearing on Friday, the Minister assured backbenchers that the island was prepared, should Russia invade Ukraine.
“We are ready to implement any relevant sanctions that the UK or UN might issue in relation to any potential Russian aggression,” he said.
“We have seen changes to a statutory instrument in the UK. We, at this point, don’t need to change anything because we already have a very flexible piece of legislation which allows me to make an order to introduce sanctions.
“Officials have been liaising with the Foreign Office to ensure we are ready straight away to implement those sanctions.”
Jersey updated its sanctions guidance to regulated finance firms earlier this month.
This prohibits people dealing with five Russian banks: Sberbank, VTB bank, Gazprombank, Vnesheconombank, Rosselkhozbank, and six firms: OPK Oboronprom, United Aircraft Corporation, Uralvagonzavod, Rosneft, Transneft or Gazprom Neft.
Pictured: If they come in, sanctions are likely to apply to firms and individuals most closely linked to Vladimir Putin.
The island has had high-profile links to Russia before.
Aluminium giant UC Rusal was domiciled in St. Helier before it moved back to Russia in 2020.
And in 2018, Chelsea owner Roman Abramovich was given permission to become a Jersey resident but, in the end, acquired Israel citizenship, allowing him to travel to and from the UK for six months at a time.
“There is Russian business in Jersey, as there is throughout Europe, and there will be assets held and administered here where the beneficial owners are Russian,” said Senator Gorst.
“Of course, what the UK and international community will do, if sanctions are brought forward - and it looks likely that they will - is target those that are closest to the Putin administration.”
The Minister added that he had confidence that firms in Jersey had the processes in place to identify and deal with clients that came under international sanctions.
“We have no reason to doubt that service providers haven’t got the facilities in place and ability to do anything other but comply with sanctions, and the regulator has a supervisory role as well,” he said.
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