Singapore's three largest local banks have reportedly restricted trade financing for Russian energy deals, in line with the stance taken by the city-state’s government.
DBS, OCBC and UOB – Singapore’s «big three» lenders – have halted the issuance of letters of credit linked to Russian energy deals, according to a «Bloomberg» report citing unnamed sources, in response to the Russian military invasion of Ukraine.
The move follows comments by Singapore foreign minister Vivian Balakrishnan about plans to block certain Russian banks and some financial transactions linked to the country.
«Financial institutions are aware of the heightened risks, and are taking appropriate measures to manage any legal, reputational and operational risks arising from the sanctions imposed by various jurisdictions,» said the Monetary Authority of Singapore in a separate statement on the Russia-Ukraine conflict.
