Five Singaporean firms hit US sanctions for aiding Russian war effort

SINGLE SIDED BUT WEIGHT BEARING

“Unlike UN sanctions, US sanctions are unilateral,” explained Muhammad Faizal Abdul Rahman, a research fellow at the S. Rajaratnam School of International Studies.

“But they carry significant weight because the US is the world’s largest economy by GDP (gross domestic product) and is a global power that dominates the international financial system.”

He said it would be difficult for foreign firms under U.S. sanctions to do business with U.S. entities and individuals and to sell or purchase goods and services in the U.S. market.

Such sanctions also isolate these companies from the international financial system, Mr. Faizal said.

“These sanctions may also act as indirect political pressure on other countries, especially those in the non-Western world, to do more to rein in sanctioned companies and to be more Western-oriented in efforts to weaken the Russian economy and military industry. complicated,” he said.

Dr Shashi Jayakumar, chief executive of security consultancy SJK Geostrategic Advisory, noted that this is not the first time Singaporean entities or individuals have been sanctioned by OFAC.

“Singapore entities and individuals have been designated by OFAC in the past due to their links or business dealings with North Korea, Iran or Myanmar,” he said.

In March 2022 Singapore introduced financial measures targets certain Russian banks, organizations and activities in Russia, as well as fundraising activities for the benefit of the Russian government.

The Singapore government also imposed export controls on items that could be “directly used as weapons to harm or enslave Ukrainians” as well as items that could facilitate offensive cyber operations, the Ministry of Foreign Affairs said at the time.