The sanctions imposed on Russia as a “response” to its invasion of Ukraine are “manageable” by insurance companies and Britain’s wider financial sector, Bank of England Deputy Governor Sam Woods said on Tuesday.
Britain has excluded Russian companies from the London aviation and space insurance market, which is the largest specialist insurance hub in the world, which means that no payments are made for existing or new spare or reinsurance contracts.
In addition, some Russian banks have been disconnected from the global SWIFT payment messaging system due to sanctions, and the London Stock Exchange has suspended trading for more than 30 Russian listed companies.
Woods, who heads the Bank of England’s regulatory arm for banks and insurance companies, told the House of Lords’s insurance committee that it was “quite difficult” to implement the “tough package” of sanctions.
“We have looked very carefully at whether we consider any collateral damage or impact on the UK financial services sector to be manageable and so far we consider it to be,” Woods added.
Source: Capital
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