Sberbankthe main Russian bank, announced, on Wednesday, March 2, its withdrawal from the European market after the sanctions caused by the invasion of Ukraine by President Vladimir Putin caused a run on their local warehouses.
The firm assured that it is not in a position to provide liquidity to its European subsidiaries due to a provision of the Russian Central Bank.
“In the current situation, Sberbank decided to withdraw from the European market,” the establishment said in a statement released by Russian agencies.
Its European subsidiaries face “irregular outflows of funds and threats to the security of its employees and branches,” added the entity.
The company has a presence in eight European countries: Germany, Austria, Croatia, the Czech Republic, Hungary, Slovenia, Serbia and Bosnia-Herzegovina. Only the subsidiary Sberbank in Switzerland is not concerned by the provision.
It should be noted that the European Union had excluded, hours before March 2, seven Russian banks from the Swift financial transaction system.
In the list of sanctioned banks, VTB stands out, the second largest in Russia. However, the measure did not affect Sberbank nor to Gazprombank, through which European payments are processed for imports of Russian oil and gas.
After hearing the news, the certificate of deposit of Sberbank on the London Stock Exchange it pulverized its value, plummeting 94% to a price of 0.01 dollars.
Source: Larepublica
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