Russia has warned India about the potential fallout if Moscow is blacklisted by the Financial Action Task Force FATF. The warning focuses on how the move could disrupt bilateral cooperation across several crucial sectors such as defense, transport and energy, according to a report from Bloomberg citing an unnamed source.
By late February, FATF leadership froze Russia out of the organization. Following that decision, Ukrainian officials argued that Moscow should be added to the FATF blacklist, which currently includes Iran, North Korea and Myanmar. Russia has since begun signaling to its major trading partners that consequences could follow if FATF actions escalate, seeking to guard important economic ties.
The Kremlin appears to exert pressure on governments, including India, implying that defense and energy agreements could be jeopardized unless partners help block efforts aimed at isolating Russia within the international financial system. These moves are being timed ahead of an anticipated FATF meeting in June.
Should FATF take further steps against Russia, member states as well as banks, payment processing firms and investment groups would be obliged to conduct enhanced due diligence on transactions involving Moscow. In the most critical scenarios, institutions may need to implement countermeasures to safeguard the integrity of the global financial framework, according to the note.