This week, ETF.com reported that the latest sanctions from the U.S. Treasury Department froze assets from the Russian central bank and its ministry of finance, a move that may pose an unprecedented challenge to the plumbing that underlies several billion-dollar ETFs.
The new penalties introduced on February 28, 2022, “effectively immobilizes any assets of the Central Bank of the Russian Federation,” the Russian Ministry of Finance or the country’s sovereign wealth fund in the U.S., according to a statement from the Treasury Department.
We are hearing from certain global custodians that the SWIFT sanctions which have been announced will take time to be implemented, and information on how the sanctions will be enacted is dependent on SWIFT. When these sanctions are implemented, SWIFT will likely remove sanctioned entities from the platform,” shared Chuck Todd, Senior Managing Director at Foreside.
Foreside continues to monitor the SWIFT payments system changes that have restricted the flow of assets in and out of Russia. To read the full article from ETF.com, click here.