S.Korea to support companies to minimise impacts from Ukraine crisis

Seoul: South Korea said Friday it plans to provide financial support to local exporters in an effort to minimise their potential damage from international sanctions against Russia over Moscow’s invasion of Ukraine.The US announced new sanctions against Russia, including export controls, over Moscow’s invasion of Ukraine in a bid to restrict Russia’s ability to do business in major currencies, Yonhap news agency reported.South Korea said Thursday it will join the international community in imposing sanctions against Russia though it stopped short of drawing up its own punitive measures against Moscow.

The government said it will immediately provide trade financing to local exporters if they suffer business losses due to the sanctions. It also plans to draw up an emergency financing programme worth of up to 2 trillion won ($1.7 billion) if needed.South Korea said the Ukraine crisis is expected to have limited impacts on the economy in the short term, given its export volumes to Russia and Ukraine, and a stockpile of major raw materials.The government is closely watching the developments of the Ukraine tensions on concerns that it could jack up already high oil prices and disrupt supplies of energy and raw materials.Oil prices topped $100 per dollar Thursday, moving to a seven-year high, amid the escalating Ukraine tensions. South Korea heavily relies on imports for its energy needs.