Denmark to ban trade in kroner with Russia to prevent sanctions loophole

Denmark is to pass a law banning the trade of cash and securities in kroner to Russia and Belarus, the Danish Ministry of Industry, Business and Financial Affairs said on Tuesday.

danish money
Denmark is to rush through a new law banning trade with Russia and Belarus in kroner. Photo Kristian Djurhuus/Ritzau Scanpix

Under economic sanctions put in place following Moscow’s invasion of Ukraine, a ban on selling cash and tradeable financial assets in euros to Russia and Belarus has been put in place by the EU.

Copenhagen will now act to pass an emergency bill preventing similar transactions using the Danish krone, the business ministry confirmed in a statement.

The fixed exchange rate policy with the euro means that the krone can be used as a shadow currency for the euro, meaning it can be used to circumvent sanctions placed on Russia in response to the invasion of Ukraine.

“The hard economic sanctions are a strong weapon against Putin and we support the hardest possible sanctions in Denmark,” business minister Simon Kollerup said in the statement.

“We can see that Russia’s economy has been hit hard and the Russian currency has dropped in value with the effect that rich Russians are looking out for other places to move their fortunes,” he said.

“We have already closed the door to the EU and the euro, and with this bill we ensure that Denmark will not become a loophole,” he said.

The government has requested expedited processing through parliament of the bill, which would apply equivalent restrictions on trade with the krone to those already in place with the euro.

The bill will be tabled on Tuesday, the ministry said.

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Russian World War II monument vandalised on Danish island

A Russian monument to World War II soldiers on Danish island Bornholm has been painted on using the colours of the Ukrainian flag.

Russian World War II monument vandalised on Danish island

The monument, an obelisk at the Russian cemetery in the town of Allinge on the Baltic Sea island, was partly painted over in blue and yellow paint on Sunday, local broadcaster TV2 Bornholm reports.

The paint was used to change a written tribute to fallen Russian soldiers on the monument to a message expressing support for Ukraine during the ongoing invasion by Russia, which began on February 24th this year.

The church in Allinge has reported the damage to the monument to police, according to the report.

The Russian cemetery on Bornholm is one of a small number of locations in Denmark at which Russia marks the Soviet victory over Nazi Germany in World War II.

The Russian ambassador to Denmark, Vladimir Barbin, customarily marks Russia’s Victory Day – May 9th – by laying a wreath at the cemetery.

Broadcaster DR reported on Monday that was unlikely to happen this year amid poor diplomatic relations between Russia and Denmark and local opposition on Bornholm to Barbin visiting the island in the context of the Russian war in Ukraine. The Russian embassy has not confirmed to DR whether the ambassador has cancelled plans to go to Bornholm.

While most of Denmark was liberated by the advance of British soldiers at the end of World War II, this was not the case on Bornholm, which is located 200 kilometres east of Copenhagen in the Baltic Sea and is closer to Poland than Denmark as the crow flies.

Soviet Soldiers arrived on Bornholm as the German occupation ended and remained until the following spring in 1946.

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