The United Arab Emirates has stated that it is being cautious not to violate the sanctions imposed by its Western allies on Russia due to the conflict in Ukraine, following a report by the Wall Street Journal (WSJ) claiming that the country is assisting Moscow by providing a channel for Russian funds.
An official from the UAE, however, has mentioned that the country has a strong process in place to handle individuals and companies under sanctions, and is in close communication with the United States and the European Union regarding the impact of the war on the global economy.
The official, as quoted by the publication, further added that Emirati banks are actively monitoring compliance with the sanctions imposed on Russia to prevent any violations of international law.
“Given the current global climate, there has been an increase in financial and investment inflows to the UAE, as the country is recognized as a stable global investment hub,” stated the official. “We will continue to take these responsibilities extremely seriously, especially considering the current geopolitical landscape.”
The WSJ reported that the influx of Russians coming to the UAE has caught the attention of several major banks in the Gulf country, including Emirates NBD, the main government-owned bank in Dubai, which is hiring Russian bankers to establish a unit dedicated to managing funds from wealthy Russians.
The report also mentioned that local banks have opened numerous accounts for Russians, although Emirati officials have clarified that they avoid dealing with individuals under sanctions in order to maintain correspondent banking relationships with US banks that handle dollar transactions.
Post from www.aljazeera.com