Europe & Central AsiaGlobal

Russian Bank Exits from EU Citing Threats to Employees

Russia's key state bank has revealed that it will pull out of the European Union's financial markets, citing threats to the safety of employees and its branches in the wake of Moscow's attack on Ukraine.

Sharing is caring!

Russia’s leading bank – Sberbank announced that the decision had been made as a result of its subsidiary banks facing “an abnormal outflow of funds”. The financial giant also claimed that its employees and branches were under threat.

“Due to the instruction of Russia’s Central Bank, Sberbank (Russia) will not be able to supply liquidity to its European subsidiaries,” the notice read, after the institution took measures to preserve its foreign currency.

However, it offered reassurances that its subsidiary banks had “a high level of capital and quality of assets”, and that customer deposits were “insured in line with local legislation”.

The departure of Russia’s largest lender from the EU does not impact its business in Switzerland, which it said is continuing to operate normally, as it has “a sufficient level of capital and assets to continue its activities”, RT reported.

Sberbank had been operational in a number of EU member states, including Germany, Austria, Croatia, and Hungary, and boasted European assets worth over $14.4bn at the end of 2020.

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button
%d bloggers like this: