Russian bank
Sberbank’s European subsidiary has to shut down operations
Sberbank was sanctioned by the United States. Photo: Tomandl Jan/CTK/dpa
© dpa-infocom GmbH
Financial sanctions over Russia’s invasion of Ukraine have hit the EU subsidiary of Russia’s Sberbank hard. She is on the brink of extinction.
The European subsidiary of the Russian Sberbank, which is affected by sanctions, has to stop operations. The Austrian Financial Market Authority (FMA) announced that the Vienna-based bank had to end all transactions with immediate effect.
The move came at the direction of the European Central Bank (ECB), which on Sunday determined that Sberbank Europe AG may face insolvency due to the Russian invasion of Ukraine and massive cash outflows.
A bank reorganization or resolution in accordance with the European
Bank restructuring and resolution guidelines are not in the public interest, it said.
Because of the expected economic difficulties, the FMA had previously prohibited transfers, transactions and larger payments.
The majority state bank Sberbank and its European subsidiary have been sanctioned by the United States. However, the exclusion of several Russian banks from the Swift international payment system will not directly affect Sberbank, according to diplomats.