Sberbank, Russia’s biggest bank, has left almost all European markets, blaming large cash outflows and threats to its employees and property after the Russian invasion of Ukraine and subsequent Western sanctions.
The move seemed inevitable after the European Central Bank (ECB) ordered the closure of the bank’s European arm, warning that it would be driven into a state of insufficiency by a rush of withdrawals sparked by the invasion, which Moscow calls a “special operation”. .
The news came Wednesday as Russian state-controlled Sberbank reported record annual profits for 2021.
The bank said it was no longer able to provide liquidity to European subsidiaries following an order from Russia’s central bank, which seeks to preserve foreign currency.
But it said capital and assets were sufficient to pay all depositors.
The move highlights the pressure some Russian companies are facing from unprecedented measures from the West to isolate Moscow, including sanctions on its central bank and the exclusion of some of its banks from the global Swift payments system.
Russian central bank governor Elvira Nabiullina said on Wednesday that the country’s economy is facing an extreme situation and is doing all it can to ensure the financial system can handle any impact.
“In the current situation, Sberbank has decided to leave the European market,” it said in a statement.
“The group’s subsidiary banks faced abnormal cash outflows and threats to the safety of their employees and branches.”
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
