2023-Public-Sector-Perspectives

Unlike in many countries in turmoil, many humanitarian organizations had no presence in Ukraine, as the need for support in the country had decreased as its economy grew in the years prior to the invasion. For NGOs and other international organizations seeking to establish operations in Ukraine – as well as for those with existing personnel or operations in Ukraine and Russia – the imposition by all major countries of unprecedented levels of sanctions made it difficult to move money to people in occupied parts of Ukraine (either to fund programs or to make other payments such as pensions), even if they had specific government approval. Sanctions and other restrictions included the disconnecting of several designated Russian entities from the SWIFT payments network and the prohibition of payments to Russia and payments to selected Russian citizens. Working with humanitarian organization clients, Citi assessed a number of different options to help them fund operations. Eventually a majority of organizations selected Poland as the most convenient location from which to operate and provide support, both for people within Ukraine and for displaced people in receiving centers in neighboring countries. NGOs and other international organizations made a concerted effort to engage with the private sector for logistics and other services, procuring services from Polish companies as well as multinationals. Citi opened accounts for humanitarian clients in Poland as well as in Hungary, Slovakia, Romania and Ukraine (where relevant) to enable them to scale up response efforts. Citi also has operations in Bulgaria and the Czech Republic and can facilitate payments to Lithuania and Moldova via WorldLink. Crucially, Citi enabled NGOs and other humanitarian organizations to access local banking services in Poland and Ukraine almost overnight. Although the account opening process was expedited, Citi’s risk and controls were not compromised in any way. Where necessary, Citi has worked with trusted vendors to provide additional services in Poland, such as cash distribution, for NGOs and multilateral clients. Conclusion As the experience of Afghanistan, Ukraine and Haiti demonstrates, each humanitarian crisis is different: the needs of NGOs, multilaterals and other humanitarian organizations – and the local populations they are supporting – vary widely depending on circumstances on the ground. Moreover, financial systems differ in every country (as do international sanctions regimes, should they be in place). When it comes to facilitating payments to support aid efforts, a one-size-fits-all approach is impossible. Instead, each crisis requires a unique tailored response. Citi’s global presence, especially in emerging and frontier markets, and the bank’s on-the-ground knowledge, gives it the insights – and flexibility – to adapt its capabilities to each crisis situation. As well as the bank’s own international footprint and expertise, it can draw on extensive relationships with third parties to help facilitate the activities of NGOs and other humanitarian organizations in conflict zones and enable them to support people in need. Citi Perspectives for the Public Sector 9