Emirates NBD, the second largest bank in the UAE, began to block Russian investment accounts, Forbes reported citing bank’s clients.
ENBD said the restrictions were imposed in accordance with the EU directive. They do not apply to residents of the EU, the European Economic Area or Switzerland, yet UAE residents fall under them.
Russian assets in ENBD will be transferred to a segregated account with limited funds withdrawal.
Russians will also not be able to sell securities using the Delivery-Versus-Payment settlement method ensuring the transfer of securities only occurs after payment is made.
Now Russians will only be able to use the Free-Of-Payment method that involves delivery of the securities without a simultaneous transfer of funds. This mechanism is believed to create additional risks for the seller.
In early March, Western countries reportedly were pushing the UAE to comply with anti-Russian sanctions.
UAE going down the wrong path.