The financial control over Russian companies in the UAE has intensified as a result of sanctions
In July, financial institutions in the United Arab Emirates began to strengthen their control over the activities of Russian companies. According to a report from the Foreign Intelligence Service, about 30% of enterprises from the Russian Federation received notifications about restrictions on financial operations or the closure of bank accounts.
Reasons for closing accounts included failure to respond or delay in responding to bank inquiries, errors in documents, discrepancies between financial flows and declared activities, connections with countries on the FATF 'blacklist', or with individuals/entities under international sanctions. Sanction pressure began in 2024 after the UK imposed sanctions against UAE companies that helped circumvent sanctions against Russia. The situation worsened after the adoption of the 18th package of EU sanctions, which included Emirati entities associated with Russia,' - commented the intelligence.
Due to the increasing sanction pressure and the adoption of certain restrictions, Russian companies in the UAE are facing complications in the financial sphere. The introduction of new control rules may pose significant challenges for businesses with foreign capital and connections between companies from Russia and the UAE.