European financial institutions turn their backs on Russia

Deutsche Bank has backtracked, saying it will pull out of Russia entirely and the London Stock Exchange Group has suspended all its services in the country, as Western governments impose sanctions over the Ukraine invasion.

The Germanwhich had faced harsh criticism from some investors and politicians for its continued ties to Russiasaid late on Friday that it would close its business there.

The unexpected measure places the German bank alongside large US entities Goldman Sachs and JPMorgan Chasewhich came out of Russia after the invasion on February 24, and will increase the pressure on its rivals to continue breaking ties.

Deutsche had argued that it needed to support multinational companies doing business in Russia. But on Friday afternoon in Frankfurt, the bank suddenly changed course.

“We are in the process of winding down our remaining business in Russia while helping our non-Russian multinational clients wind down their operations”said the bank. “There will be no new business in Russia.”

the insurer Zürich It is no longer accepting new clients in Russia and will not renew existing business, a spokesman said Monday.

Asset managers have also said they will not make new investments in Russia and many Russia-focused funds have been frozen due to being unable to operate following Western sanctions and countermeasures. Moscow.

The British stock market group London Stock Exchange Group it said late on Friday that it was suspending all products and services for all customers in Russia, days after suspending the distribution of news and commentary in the country following new laws from Moscow.

“LSEG confirms that it is suspending all products and services for all customers in Russia, subject to any regulatory requirements”the company said in a statement.

“We continue to support our employees in the region. We are also engaging with our customers outside of Russia who rely on us for data and pricing information within Russia. We are evaluating alternative options to continue providing these services”he added.

The index provider, FTSE Russellannounced on Monday that it will eliminate four companies listed in United Kingdom and focused on Russia, including Evrazfrom Roman Abramovichafter many brokers refused to trade its shares.

Evraz, along with Polymetal International, Petropavlovsk and Raven Property Group they will be removed from all FTSE indices during the March review, it said in a statement.

UniCredit

For its part, Italy’s second largest bank, UniCreditconsiders the geopolitical risks derived from the war in Ukraine to analyze the cessation of its operations in Russia, where it operates with 4,000 employees and some 70 branches.

The CEO of UniCredit, Andrea Orcellstated the day before (Tuesday) in a digital meeting with the US financial company Morgan Stanley that UniCredit is “completing an urgent internal assessment of the impact and consequences of an exit” of Russia, but that it is not a decision that should be taken lightly, according to a statement from the Italian entity.

“It would be very easy to say that UniCredit leaves Russia, but divest a bank that employs more than 4,000 people and serves more than 1,500 companies, 1,250 of which are European, and face a shock that could reach 7.5 billion euros. euros, cannot and should not be done overnight”said.