The Cabinet on Monday held an extraordinary meeting to discuss the possible economic impact of the Russia-Ukraine crisis on Taiwan, which has joined Western countries in imposing sanctions on Moscow.
Some of the issues discussed at the special meeting included the decision by the United States and European Union to cut off a number of Russian banks from the SWIFT interbank payment system, Cabinet spokesperson Lo Ping-cheng (???) told CNA.
SWIFT, which stands for Society for Worldwide Interbank Financial Telecommunication, is a global financial network that allows the transfer of money across borders.
Although the exclusion of Russia is limited to only certain banks, Lo said, some Taiwanese companies may be affected, as they would not be able to conduct transactions with that country.
The Taiwan government announced on Feb. 25 that it was joining the international sanctions against Russia over its invasion of Ukraine, in accordance with the Wassenaar Arrangement — a 42-member voluntary export-control regime that exchanges information on transfers of conventional weapons and dual-use goods and technologies.
When the sanctions take effect, the Taiwan government said, it would tightly screen all exports, based on a control list that will include specialty materials, electronics components, computers, telecom equipment, devices sensitive to cybersecurity, sensors, laser products, navigation equipment, items containing nuclear substances, and aviation, marine, and aerospace products.
Lo said Monday that if local businesses suffer any resulting losses, they will be offered government assistance, but he did not elaborate.
The volume of bilateral trade between Taiwan and Russia is minimal, and the latter is not Taiwan’s main supplier of energy or agricultural products, he said, adding that Taiwan has enough of those supplies to last for some time.
Meanwhile, the government will continue to monitor the price fluctuations of raw materials and commodities and try to alleviate the negative impact on Taiwan’s economy, Lo said.
He reiterated that Taiwan stands firm with other democratic nations in condemning Russia over its invasion of Ukraine and it will offer humanitarian assistance to the latter.
The extraordinary Cabinet meeting was led by Premier Su Tseng-chang (???) and included Vice Premier Shen Jong-chin (???), Economics Minister Wang Mei-hua (???), Foreign Minister Joseph Wu (???), Finance Minister Su Jain-rong (???), Financial Supervisory Commission Chairperson Huan Tien-mu (???) and Deputy Agriculture Minister Chen Junne-jih (???).
According to the Ministry of Economic Affairs, bilateral trade between Taiwan and Russia was US$6.306 billion in 2021, with Taipei’s exports to Moscow totaling US$1.318 billion, accounting for only 0.76 percent of its total outbound sales.
Source: Focus Taiwan News Channel