HM Treasury said that investors may use financial companies to sell any derivatives, repurchase agreements and reverse repurchase transactions that they had entered into before March 1 with the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation or the Ministry of Finance of the Russian Federation.
The Treasury said that investors will be able to unload their derivatives and repo agreements under a license that is valid from Tuesday until May 2. But the government can revoke or suspend the license at any time, the Treasury added.
The permission is provided for by a general license issued by the Office of Financial Sanctions Implementation, the U.K.'s sanctions enforcer.
The move allowing British traders to unwind Russian government derivative and repo positions comes after Britain imposed sweeping sanctions on Moscow in response to its invasion of Ukraine. The measures include freezing assets of individuals close to President Vladimir Putin and preventing Russian banks from having access to sterling and clearing payments in the U.K.
Chancellor of the Exchequer Rishi Sunak has urged company bosses to "think very carefully" about whether their investments are supporting Russia's invasion of its European neighbor. He has put pressure on them to sell their existing investments in Russia to strip funding for Putin's regime.
Sunak has said the government recognizes that some companies could find that it takes some time to wind down their positions in Russia slowly and safely because of the raft of sanctions placed on the country by the West. The chancellor has said that the government would give support to businesses that want to get rid of assets.
--Editing by Joe Millis.
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