The government will suspend financial transactions with Russia's major banks and affiliates, joining international sanctions against Moscow over its invasion of Ukraine.

According to the finance ministry on Tuesday, Seoul will halt financial dealings with seven Russian banks and their affiliates, which have all been sanctioned by Washington. The list includes Russia's top lender Sberbank and state-owned banks VEB and PSB.

The ministry will, however, exempt transactions related to agriculture, COVID-19 medical support and energy supplies under the same standards applied by the U.S.

Seoul will join the global move to exclude Russia from the SWIFT network, critically impeding its ability to engage in international financial transactions.

The ministry also strongly recommended public and financial institutions halt investments in Russian government bonds starting Wednesday.