Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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204. To ask the Minister for Finance if the Irish director of the European Bank of Reconstruction and Development will be seeking the imposition by the bank of sanctions against Russia; and if he will make a statement on the matter. [12585/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy will be aware that the European Bank of Reconstruction and Development (or the EBRD) was established in 1991 to provide finance to help build market economies in former Warsaw Pact and Soviet Union countries in Central and Eastern Europe.  Since then, the Bank has progressively and significantly extended its geographical scope of operations and is currently active in nearly 40 countries from central Europe to central Asia and the southern and eastern Mediterranean, plus the West Bank and Gaza. Seventy-one countries, including Russia and Belarus have a shareholding in the EBRD. 

Ireland is a founding member of the Bank and is part of a multi country constituency with Denmark, Lithuania and Kosovo.  In this regard, the Danish representative, currently holds the rotating Director post, which acts on behalf of our constituency.  That said, there is an Advisor, seconded from my Department, to the constituency office in London, who works closely with the Director.  Officials in my Department engage extensively and constructively with these EBRD officials and I am kept appraised on an ongoing basis of developments within the EBRD. 

With regard to the specific query, on 1 March, the EBRD Board of Directors approved a recommendation to the Board of Governors for the suspension and modification of access to Bank resources by the Russian Federation and Belarus.  I understand that if the Board of Governors adopts this recommendation, the EBRD would not finance any new operations, would not implement any technical cooperation projects and would suspend or cancel any future disbursements under existing operations in both Russia and Belarus.  This resolution will require the support of 49 Governors, two thirds of the Board Governors with three quarters of the voting power, and a vote is expected on it shortly.  

The Deputy can rest assured that I fully support this proposal, and I welcome that the EBRD is acting in such a decisive manner on this issue.

Neale Richmond (Dublin Rathdown, Fine Gael)
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205. To ask the Minister for Finance if the suspension of Euro clearing for Russian banks will be supported in view of the illegal invasion of Ukraine by Russia; and if he will make a statement on the matter. [12656/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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Ireland is at the forefront of EU efforts to adopt strong sanctions packages which will have an impact on the Russian economy. EU sanctions announced to date in response to the situation are already the most extensive ever.  

European countries are aiming to stop Russian companies from tapping their markets for financing by barring access to market infrastructure. 

Clearing is the process by which a ‘clearing house’, also called a ‘central counter party’ (CCP), acts as the middleman for both the buyer and the seller of a financial instrument. 

The European Association of CCP Clearing Houses (EACH) represents the interests of Central Counterparties in Europe. 

Given the actions of Russia against Ukraine and in consistency with wider EU sanctions, EACH announced that it felt the need to take action, both from the perspective of adherence to current and possible wider sanctions and to act in the best interests of its membership.

The EACH Board therefore decided to temporarily suspend Russian Member CCP National Clearing Centre (NCC) from EACH in line with the organisations Articles of Association. The NCC is part of the Moscow Exchange Group and the only Russian CCP that is recognised under applicable EU legislation. 

Sanctions on Russia’s access to EU capital and financial markets have now been expanded to include the exclusion of seven Russian banks from the SWIFT (Society for Worldwide Interbank Financial Telecommunication) messaging system.

Ireland argued in favour of the exclusion of Russian banks from SWIFT and we are now working to implement these sanctions.

Ireland will continue to engage with the EU on any additional sanction proposals moving forward, including in the area of clearing.