Russia's largest bank, Sberbank, announces its exit from the European market.
Sberbank, Russia's largest bank, stated today that it is exiting the European market due to financial sanctions imposed by the West in response to Russia's military invasion of Ukraine.
Sberbank "decided to exit the European market" due to "abnormal money outflows and threats to the safety of its personnel and branches," according to a press release reported by Russian news outlets.
The British government sanctioned Russia's largest bank, Sberbank, on Tuesday in retaliation to Vladimir Putin's army's invasion of Ukraine.
Following the freezing of assets on the territory of various financial institutions last week and then the central bank and finance ministry, the United Kingdom stated yesterday that it will freeze assets on the territory of all Russian banks "in the coming days."
Meanwhile, the European Central Bank (ECB) has warned that Sberbank Europe AG and its subsidiaries in Croatia and Slovenia are either already bankrupt or are on the verge of being bankrupt.
The Austrian parent bank, Sberbank Europe AG, is completely owned by Sberbank of Russia, a public limited company whose largest shareholder is the Russian Federation (50 percent plus one voting share).
The ECB took the decision after determining that the bank may be unable to fulfill its loans or other responsibilities when they fall due in the near future. Sberbank Europe AG and its subsidiaries experienced considerable deposit withdrawals as a result of the reputational damage caused by geopolitical concerns. This resulted in a worsening of the company's liquidity status. And there are no solutions available to restore this situation at the group level or to any of its subsidiaries inside the banking union.
By fLEXI tEAM