Thread by @faisalislam

Coming up - fascinating iv with Governor of Central Bank of Ukraine, targeting both inflation, & every hard currency flow into Russia, while keeping cash machines and refugees bank accounts functioning.

Wants more sanctions & reflects on precedent set in targeting a central bank

NEW:
BBC learns Russia suspended from Bank for International Setttlements, as requested by Ukraine CB Governor in interview with us yesterday.

“BIS will not be an avenue for sanctions to be circumvented. access of Central Bank of Russia to all BIS services..has been suspended."

Worth unpacking what Kyrylo Shevchenko, the NBU Governor, told us, about the sheer breadth of how Ukraine is trying to get whole of Russia to reap the economic consequences of Putin’s decision to invade… painstakingly trying to seal up every pipe of hard cash into Moscow…

1… Governor Shevchenko called on seized assets of Russian oligarchs, which now include Chelsea Football club, to be used to pay “reparations” for the “huge money” required to rebuild Ukraine after Russia’s bombing and invasion…

“We already see the effect [of sanctions] on the aggressor’s financial system, but we are still waiting for more to be done. I would like to underline that every day that sanctions are delayed is costing the lives of civilians and children,” Mr Shevchenko said.

Shevchenko also confirmed Around 11bn hryvnia ($350m, £280m) has been paid in to the two special accounts set up by the National Bank of Ukraine to receive donations for the military and for humanitarian causes…

3. Extra sanctions Ukraine wants on Moscow:
*getting data platforms Bloomberg/ Refinitiv to terminate Rus access
* severing correspondent relationships with Russian banks
* expulsion from BIS (now suspended)
* block Russian access to IMF and World Bank
* China Union Pay block

4. Requested sanctions…

*Armenia, Kazakhstan, Tajikstan, Turkey and Vietnam to block the Russian payment system Mir
* Western Union to cease delivery of cash to Russian and Belarusian banks

5. asked Governor if he was worried about precedent of ignoring sovereign immunity, set re Central Bank Russia

He pauses. "I can answer from bottom of my heart. We see that CBR supports military invasion and thus is also guilty, responsible in deaths of civilians in Ukraine".

6. He said importance of energy sanctions not just about cash but to demonstrate to Russian people Kremlin was lying:

“They are using it to misinform the Russian public about the West’s unwillingness to take tougher measures, out of fear of losing access to Russian oil and gas”

7. Shevchenko coordinating this while trying to maintain Ukraine’s financial system, physical access to cash at ATMs, financial system access for Ukrainian refugees, while sometimes operating from bunker…”can proudly say that Ukrainian banking system remains stable and liquid”

Full story from @benedict_king of our fascinating interview with the central banker on a financial frontline…

bbc.co.uk/news/business-…

Another sanctions ask in this interview with Ukraine CB Governor has materialised today with Western Union money transfer suspending operations in Russia and Belarussia

https://twitter.com/westernunion/status/1501940215371362316?s=21