The UK will stop Russia from selling sovereign debt in London, foreign secretary Liz Truss confirmed on Wednesday.
The Foreign Office first announced on Tuesday it had an “unprecedented package of further sanctions ready to go” should there be more “aggressive acts” against Ukraine by Russia.
“As part of this, should Russia not de-escalate, the UK will shortly introduce legislation which will, among other steps, prevent Russia from issuing sovereign debt on UK markets,” it added.
But touring media outlets on Wednesday morning, Truss looked to confirm that the ban would go ahead.
She told Sky News: “We’ve been very clear that we’re going to limit access to British markets.
“We’re going to stop the Russian government raising sovereign debt in the United Kingdom.”
Prime minister Boris Johnson imposed sanctions on five Russian banks and three individuals on Tuesday, in response to Russian president Vladimir Putin sending tanks into two rebel-held regions of eastern Ukraine.
MPs across the chamber urged the government to go further, however, including calls from opposition leader Keir Stammer to halt trading in Russian sovereign debt, which is issued as bonds by governments in foreign currencies.
Truss told Sky: “There will be even more tough sanctions on key oligarchs, on key organisations in Russia, limiting Russia’s access to the financial markets, if there is a full-scale invasion of Ukraine.”
Russia already has the world’s fourth-largest foreign exchange reserves, however, of over $630bn, and its finances have been further bolstered after oil prices surged following the escalation of hostilities.
It is understood that Britain would need specific legislation to limit sovereign debt sales in London.
