Many British companies are afraid to do business with Ukrainian companies given the risk of bank sanctions

British banks are closing accounts of domestic companies doing business with Ukraine, due to concerns about risks related to anti-Russian sanctions and money laundering, report political newspaper.

The newspaper quoted a letter from Bate Toms, co-chair of the British-Ukrainian Chamber of Commerce, sent on July 26 to Treasury Secretary for Economics Andrew Griffiths. “Conducting one transaction with Ukraine can cause close account. Banks in the UK often refuse to open accounts in the presence of Ukrainian trade plans,” the letter read.

The document also cites complaints from the company small and mediumincluding those dealing in Ukrainian agricultural products, that services at banks such as HSBC and Santander UK, among others, have been denied, suspended or blocked.

As a result, many British companies they are afraid to do business with Ukrainian companies against the risk of bank sanctions.

Another business group, the Anglo-Ukrainian Business Council, confirmed the UK financial institutions’ caution towards Ukraine and indicated that it was the right move. hurt relationship economy with Slavic states.

The banks, for their part, insist that they must comply with their legal and regulatory obligations, including obligations related to Western sanctions against Russia, which means additional check around whether it’s about the territories that are no longer under the control of Kyiv. At the same time, banking entities point out that there is no direct ban on doing business with Ukraine.