Russia’s biggest lender pulls out of Europe as country’s banking system crumbles under Western sanctions
Russia’s biggest lender is pulling out of Europe as Western sanctions plunge the country’s banking system into crisis.
Sberbank, which had a UK branch on Fleet Street in London, said it was pulling out of almost all of its European operations, blaming huge cash withdrawals and threats against staff.
The Moscow stock exchange was closed this week, but Sberbank’s certificates of deposit in London, which make it easier for foreign investors to trade the shares, fell another 78% and have lost more than 99% of their value since. that Russia invaded Ukraine.
Exit: Sberbank, which had a UK branch on Fleet Street in London, said it was pulling out of almost all of its European operations, blaming huge cash withdrawals and threats against staff
The upheaval came after the European Central Bank ordered the closure of Sberbank’s main European branch in Austria, warning it was at risk of failing after a flood of customers withdrew their money.
Sberbank said it was no longer able to provide funds to its European subsidiaries but had enough capital and assets to pay all depositors.
He said: “The group’s subsidiary banks faced abnormal cash outflows and security threats to employees and branches.”
The move comes after Western countries sanctioned Russian companies, oligarchs and banks.
As of December, it had around £11bn in assets and operated in countries including Croatia, Germany and Hungary. His Swiss unit will not be affected.