In 2022, the United Nations opened a Russian bank account due to Western sanctions making it difficult to use normal payment channels. The account has been used to receive membership fees from three Russian banks for a U.N. climate funding programme. Sovcombank, one of Russia’s 13 most important credit institutions, announced that the U.N. had opened an account with an undisclosed, non-sanctioned Russian lender for transactions in roubles.
A U.N. spokesperson confirmed the opening of the account, stating that it is consistent with their policy to assist all member states in paying their assessed contributions, without which they lose their right to vote. The spokesperson also mentioned the necessity of opening the account due to challenges arising from the sanctions in normal payment channels. The account will be used to receive assessed and voluntary contributions to the U.N.
In response to Russia’s “special military operation” in Ukraine, Western countries imposed wide-ranging sanctions on Russia’s financial system. In 2022, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) placed Sovcombank on its Specially Designated Nationals (SDN) list, effectively cutting it off from the U.S. financial system, banning trade with Americans, and freezing its U.S. assets.
Sovcombank is now trying to obtain a U.S. Treasury license to pay membership fees for the United Nations Environment Programme Finance Initiative (UNEP FI), seeking special exemptions for certain transactions by Russian banks. A spokesperson for UNEP confirmed that $114,000 in membership fees from three Russian banks part of the UNEP FI has been received.
As of now, Sovcombank’s OFAC license application is still pending.
(Reporting by Elena Fabrichnaya and Alexander Marrow; Editing by Andrew Cawthorne)
