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The main Russian bank Sberbank leaves the European market - Finance

The main Russian bank Sberbank leaves the European market – Finance

Sberbank Group, Russia’s main bank, announced on Wednesday that it was withdrawing from the European market, after being hit by massive financial sanctions in retaliation for Moscow’s invasion of Ukraine.

“Sberbank has decided to withdraw from the European market. The group’s subsidiary banks face abnormal outflows of funds and threats to the security of their employees and offices,” the group said in a statement quoted by the authorities. Russian news agencies.

According to this statement, Sberbank is unable to provide liquidity to its European subsidiaries, due to an order of the Central Bank of Russia.

Sberbank was present in eight European countries: Germany, Austria, Croatia, the Czech Republic, Hungary, Slovenia, Serbia and Bosnia and Herzegovina.

“Sberbank’s (European) subsidiaries have a high level of capital and assets, customer funds are insured in accordance with local laws,” the bank said.

On Tuesday evening, the EU banking regulator announced that bankruptcy proceedings would be opened for the main subsidiary in Europe of Sberbank, weakened by financial sanctions.

This Austrian-based subsidiary, Sberbank Europe AG, which employs nearly 4,000 people, will be subject to “insolvency proceedings” in this country, said this authority, the Single Resolution Board (CRU).

“Sberbank has decided to withdraw from the European market. The group’s subsidiary banks face abnormal outflows of funds and threats to the security of their employees and offices,” the group said in a statement quoted by the authorities. Russian news agencies. According to this statement, Sberbank is unable to provide liquidity to its European subsidiaries, due to an order of the Central Bank of Russia. Sberbank was present in eight European countries: Germany, Austria, Croatia, Czech Republic, Hungary, Slovenia, Serbia and Bosnia-Herzegovina. “The (European) subsidiaries of Sberbank have a high level of capital and assets, customer funds are insured in accordance with local laws,” the bank assured. On Tuesday evening, the EU banking regulator had announced that a bankruptcy procedure would be opened concerning the main subsidiary in Europe of Sberbank, weakened by the financial sanctions. This subsidiary based in Austria, Sberbank Europe AG, which employs nearly 4,000 people, will be subject to of “insolvency proceedings” in this country, said this authority, the Single Resolution Board (CRU).

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