The UK government has said that it will not issue any new guarantees, loans and insurance for exports going to Russia and Belarus.
The decision follows the government’s move to ban the export of high-end luxury goods to Russia, while also applying 35 per cent higher tariffs on key products.
The double pronged measure comes in the wake of severe economic sanctions imposed upon Russia following its invasion of Ukraine.
UK Export Finance [UKEF] has announced that it will continue to support UK trade with Ukraine with £3.5 billion of capacity, which will help UK exporters and Ukrainian buyers access the finance they require to commercially trade.
This bolsters the UK’s move in December 2021, which involved signing a new treaty with Ukraine to enable Kyiv to access the UK supply chain for the improvement of its defensive capability.
Anne-Marie Trevelyan, secretary of state for international trade, commented: “Our severe economic sanctions are working. We are tightening the screws on Russia to ensure they feel real consequences for their illegal military invasion.
“At the same time, we are doing everything we can to ensure Ukraine remains open to the world. We have signed an international treaty so that UK supplies can reach Ukraine and strengthen their defences, and UK Export Finance – our first-class export credit agency is supporting them with this.”
The latest figures released from the Department for International Trade [DIT] indicate that the department has solved over 1,000 business queries which has helped keep trade flowing to Ukraine and support firms that have ceased business with Russia and Belarus.
The DIT also announced that UK firms have voluntarily relinquished 54 licences to export their products to Russia. Meanwhile, 33 licence applications to export goods to Ukraine have been submitted to the DIT, compared with just 43 that were approved in the entirety of 2020.
Mike Freer, minister for exports, said: “We are here to support UK businesses and give them the tailored advice they need to best respond to the unprecedented and complicated situation in Ukraine. It’s heartening to see our business community step up and support Ukraine through this rapid increase in export applications to help citizens get the vital goods they depend on at this horrendous time.
“I advise any businesses with questions about operations in Ukraine, or Russia and Belarus to contact our Export Support Service and get the support they need.”
Elsewhere, six Royal Navy ships and 2,000 UK personnel have linked up with vessels and troops from 26 other countries for the latest Exercise Cold Response training test in the Arctic, which comes as the largest exercise in the region for 30 years.
The regular exercise, which takes place every other year, will involve more than twice as many personnel as the 14,000 planned for in Exercise Cold Response 2020.
Defence secretary, Ben Wallace, commented: "The Arctic is becoming an area of increasing military competition and the security of the region is directly linked to our national security.
"Exercise Cold Response is a demonstration of NATO’s ability to both operate and compete in one of the harshest environments in the world and is demonstration of how a multinational force would defend Europe’s northern flank."
Photo by John Simmons on Unsplash
