Ukrainian authorities are appealing directly to financial and energy trading exchanges to ban Russia-linked traders from their platforms, in a series of letters sent on Thursday and Friday.
“This letter is addressed to exchanges, clearing institutions, traders from the EU and the Energy Community to suspend the access of participants from Russia (and related to Russia) from exchange transactions on their exchanges, to stop clearing services of their [over the counter] transactions,” Ukraine’s Energy Minister Herman Halushchenko wrote in a letter. “Energy traders of the EU and Energy Community countries … stop cooperation with Russia.”
The call is an attempt to inflict greater financial pain on Moscow, given Russia’s heavy reliance on oil and gas revenues and Western governments’ reluctance to impose sanctions on the energy sector.
“The effect of economic sanctions … is already causing discomfort to the aggressor, but, unfortunately, their tangible result takes time, which Ukraine may not have,” Ukraine’s Economy Minister Yulia Svyrydenko wrote in a similar letter to the Association of European Energy Exchanges and European Commodity Clearing. “At the same time, Russian traders and companies continue to participate in trading on European stock exchanges, earning blood-stained funds to finance the war in Ukraine.”
On Friday, Ukraine’s securities and stock market commission widened that appeal to “all national regulators of the securities and capital markets around the world, all stock, commodity and energy exchanges, clearing houses, trading platforms and other organized and regulated market entities.”
Although oil and gas have not fallen immediately under Western sanctions, major parts of the oil industry have voluntarily stopped purchasing Russian oil this week in an unexpectedly broad boycott.