RBC: First Deputy Chairman of the Central Bank Tulin estimated the losses of Russian banks at 1.5 trillion rubles amid sanctions

The Russian banking sector, against the backdrop of the crisis and sanctions imposed against the Russian Federation due to its military operation in Ukraine, showed losses for the first time in 7 years. According to the results of the first half of 2022, they amounted to 1.5 trillion rubles, Dmitry Tulin, First Deputy Chairman of the Central Bank of the Russian Federation, said in an interview with RBC.

This is the first disclosure of information about the impact of the crisis on the financial results of banks. The last time the regulator officially published data on the net profit of banks in January – then it amounted to 164 billion rubles. Since February, the Bank of Russia has stopped disclosing the financial results of the sector, and also banned credit institutions from publishing regular reports.

“None of the banks that suffered losses in the first half of the year, the capital did not go into negative territory,” assured the first deputy chairman of the Central Bank. According to him, “it can be said that so far they have managed with“ little blood.

Recall that on February 21, 2022, Russian President Vladimir Putin signed decrees recognizing the independence of the Donetsk and Luhansk People’s Republics (DPR and LPR), and on February 24 he made an emergency appeal to the Russians and announced a special military operation in Donbass. In response to Russia’s actions, Western countries (USA, Canada, the European Union, Great Britain, Japan) announced new, tougher sanctions against the Russian Federation, including financial and economic ones, as well as against officials and businessmen.