(LEAD) Russia designates S. Korea as an 'unfriendly' nation

All News 23:33 March 07, 2022

(ATTN: UPDATES with more details of Russia's restrictions on unfriendly nations in paras 4; ADDS photo)

MOSCOW, March 7 (Yonhap) -- Russia has designated South Korea as an "unfriendly" nation after Seoul joined international sanctions against Moscow following its invasion of Ukraine, according to local reports Monday.

The Russian government released a decree that South Korea is included on its list of "unfriendly states" that "have carried out unfriendly actions" against Russia, its nationals or entities, Moscow's state news agency TASS reported.

The United States, European Union states, Japan and several other nations that have imposed or joined sanctions against Russia following its attacks on Ukraine were also labeled as unfriendly states subject to restrictions imposed by Moscow.

"Russian citizens and companies as well as the state, regions and municipalities that have obligations in foreign currencies to foreign creditors from the list of unfriendly nations can pay them back in rubles," an executive order signed by Russian President Vladimir Putin on Saturday showed.

Seoul has joined the multinational move to implement sanctions against Russia, including export control and the removal of Moscow from the SWIFT network, in which trillions of dollars change hands for cross-border payments.

Last week, South Korea said it will end transactions with seven major Russian banks and their affiliates, including Russian top lender Sberbank. It has also decided to halt investment in Russian government bonds.

Earlier in the day, South Korea unveiled additional sanctions. Seoul said it plans to suspend transactions with Russia's central bank, sovereign wealth funds and another Russian lender.

The government said it will end transactions with the Central Bank of the Russian Federation and two sovereign funds -- the National Wealth Fund of the Russian Federation and the Russian Direct Investment Fund -- starting Tuesday.