BANGKOK: The UK has placed four Thai-registered companies on its expanded sanctions list for allegedly providing support to Russia in its war against Ukraine, prompting a warning from the Thai government to local businesses about the risk to the country’s international image.
Thailand's Department of Foreign Trade (DFT), operating under the Ministry of Commerce, confirmed the move after the UK Foreign, Commonwealth & Development Office (FCDO) announced the designation of 39 third-country individuals and entities. These parties were found to be assisting Moscow under the Russia (Sanctions) (EU Exit) Regulations 2019.
DFT Director-General Arada Fuangtong disclosed that her department is not taking the matter lightly and is inviting the four listed companies for urgent discussions. The goal is to ensure they understand the repercussions of the UK law and the broader implications for the companies and Thailand as a whole.
In response, the DFT has issued a stern warning to the Thai private sector, including the Federation of Thai Industries (FTI), the Thai Chamber of Commerce, and the Thai National Shippers' Council (TNSC). They have been asked to disseminate the information and urge exporters to conduct international trade with utmost prudence.
“The listing of Thai-registered companies inevitably affects Thailand's image in the eyes of Western nations, which are crucial markets for Thai exports,” Arada said.
She stressed that while Thailand maintains a neutral policy on the conflict, it cannot prevent local firms from being affected by the domestic laws of allied Western nations.
The UK sanctions law specifically aims to counter Russia's aggression by prohibiting UK nationals, UK-registered companies, and any individual or entity with a 'UK Nexus' from engaging in trade, finance or investment with designated parties.
Entities designated under the law face severe penalties, including potential asset freezes and the denial of financial and logistical services from UK-based institutions, such as banks, insurers and shipping companies.
The criteria for designation include involvement in activities linked to "undermining Ukraine's security" or providing commercial support to Russia.
The announcement comes despite Thailand maintaining significant trade links with both the UK and Russia.
In 2024, Thai trade with the UK reached a value of approximately US$6.51 billion, with Thailand recording a surplus of about US$1.65 billion. Trade with Russia during the same period was valued at around US$1.55 billion. - The Nation/ANN
