Ireland Moves to Cleanse Financial Network by Forcibly Dissolving Companies Linked to Russia
Last week in Ireland marked a significant step in combating financial opacity and geopolitical risks — the forced closure of several companies with close ties to Russian business, which had been involved in financing Russian banks and government structures.
This action comes as part of international sanctions and internal regulatory changes aimed at increasing transparency in the country’s financial sector.
According to reports, these companies were deregistered due to the lack of official directors, a consequence of rapid departures of Irish managers from their boards shortly after Russia’s full-scale invasion of Ukraine.
Among the affected entities are firms deeply connected with major Russian banks like VTB, Sovcombank, and Qiwi Bank.
From 2012 to 2024, many of these companies issued bonds worth hundreds of millions of dollars, highlighting their significant influence within the Russian financial system.
For instance, VTB Eurasia issued $2.25 billion in bonds in 2012, while Sovcom Capital had issued $600 million in bonds before their deregistration.
As part of sanctions enforcement, their operations and listing of bonds were canceled in 2024.
This year, subsidiaries of Qiwi Bank, including OIM ABS, a euro- and ruble-bond issuer, were also deregistered.
Such measures substantially limit the ability of Russian financial actors to circumvent sanctions and complicate their financing options for military purposes.
Additionally, the Irish government has confirmed plans to tighten sanctions further by considering secondary sanctions, which would hinder the activities of companies connected to Russia on a global level, tightening the economic restrictions and increasing the pressure on Russian financial entities operating internationally.