HELSINKI: Russia has frozen the bank accounts of Finland’s diplomatic representations in Moscow and St. Petersburg, disrupting money flow and forcing the country’s missions to resort to cash payments, the Finnish foreign minister said Wednesday.
Pekka Haavisto said Moscow’s move at the end of April breaches the Vienna Convention on Diplomatic Relations and Helsinki has delivered a diplomatic note on the matter to Russia.
“We’re not alone with the money traffic problem,” Haavisto told reporters during a news conference. “Also some other European Union nations have encountered problems with money traffic in Russia. But according to our information, restrictions on Finland are among the tightest.”
He said Moscow’s measure affects, among other things, payment of rents, electricity and water bills by the Finnish Embassy in Moscow and the Consulate General in St. Petersburg, which now have to rely on their cash assets.
The move does not, however, affect salary payments to staff and there is no risk of a closure of Finland’s diplomatic missions in Russia, Haavisto said.
Earlier this year, Finland temporarily closed its diplomatic missions in the Russian Arctic city of Murmansk and the city of Petrozavodsk in the Karelia region — both not far from the Finnish border.
Haavisto — the caretaker foreign minister as the new Finnish government is currently under formation — stressed that current EU sanctions on Moscow aren’t directed at Russia’s embassies and consulates and Helsinki hasn’t frozen the bank accounts of Russia’s diplomatic missions in Finland.
He didn’t see the move as linked to Finland’s recent membership in NATO but rather to Russia’s ongoing war in Ukraine.
Finland joined NATO last month as the 31st member of the alliance, a historic move after decades of military nonalignment. Finland shares a 1,340-kilometer border with Russia, the longest of any EU member.
Russia freezes bank accounts of Finland’s diplomatic missions, prompting cash payments
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Russia freezes bank accounts of Finland’s diplomatic missions, prompting cash payments
- Freeze does not affect salary payments to staff and there is no risk of a closure of Finland’s diplomatic missions in Russia
- Finnish foreign minister: The move breaches the Vienna Convention on Diplomatic Relations
India accelerates free trade agreements against backdrop of US tariffs
- India signed a CEPA with Oman on Thursday and a CETA with the UK in July
- Delhi is also in advanced talks for trade pacts with the EU, New Zealand, Chile
NEW DELHI: India has accelerated discussions to finalize free trade agreements with several nations, as New Delhi seeks to offset the impact of steep US import tariffs and widen export destinations amid uncertainties in global trade.
India signed a Comprehensive Economic Partnership Agreement with Oman on Thursday, which allows India to export most of its goods without paying tariffs, covering 98 percent of the total value of India’s exports to the Gulf nation.
The deal comes less than five months after a multibillion-dollar trade agreement with the UK, which cut tariffs on goods from cars to alcohol, and as Indian trade negotiators are in advanced talks with New Zealand, the EU and Chile for similar partnerships.
They are part of India’s “ongoing efforts to expand its trade network and liberalize its trade,” said Anupam Manur, professor of economics at the Takshashila Institution.
“The renewed efforts to sign bilateral FTAs are partly an after-effect of New Delhi realizing the importance of diversifying trade partners, especially after India’s biggest export market, the US, levied tariff rates of up to 50 percent on India.”
Indian exporters have been hit hard by the hefty tariffs that went into effect in August.
Months of negotiations with Washington have not clarified when a trade deal to bring down the tariffs would be signed, while the levies have weighed on sectors such as textiles, auto components, metals and labor-intensive manufacturing.
The FTAs with other nations will “help partially in mitigating the effects of US tariffs,” Manur said.
In particular, Oman can “act as a gateway to other Gulf countries and even parts of Eastern Europe, Central Asia, and Africa,” and the free trade deal will most likely benefit “labor-intensive sectors in India,” he added.
The chances of concluding a deal with Washington “will prove to be difficult,” said Arun Kumar, a retired economics professor at the Jawaharlal Nehru University.
“With the US, the chances of coming to (an agreement) are a bit difficult, because they want to get our agriculture market open, which we cannot do. They want us to reduce trade with Russia. That’s also difficult for India to do,” he told Arab News.
US President Donald Trump has threatened sanctions over India’s historic ties with Moscow and its imports of Russian oil, which Washington says help fund Moscow’s ongoing war with Ukraine.
“President Trump is constantly creating new problems, like with H-1B visa and so on now. So some difficulty or the other is expected. That’s why India is trying to build relationships with other nations,” Kumar said, referring to increased vetting and delays under the Trump administration for foreign workers, who include a large number of Indian nationals.
“Substituting for the US market is going to be tough. So certainly, I think India should do what it can do in terms of promoting trade with other countries.”
India has free trade agreements with more than 10 countries, including comprehensive economic partnership agreements with South Korea, Japan, and the UAE.
It is in talks with the EU to conclude an FTA, amid new negotiations launched this year for trade agreements, including with New Zealand and Chile.
India’s approach to trade partnerships has been “totally transformed,” Commerce and Industry Minister Piyush Goyal said in a press briefing following the signing of the CEPA with Oman, which Indian officials aim to enter into force in three months.
“Now we don’t do FTAs with other developing nations; our focus is on the developed world, with whom we don’t compete,” he said. “We complement and therefore open up huge opportunities for our industry, for our manufactured goods, for our services.”
