ECB pushes Eurozone banks to withdraw from Russia amid sanctions risk
Date
5/21/2024 5:34:17 AM
(MENAFN) According to reports from the Financial Times, the European Central bank (ECB) is intensifying pressure on Eurozone banks that are still operating in Russia, urging them to expedite their withdrawal due to the risk of potential US sanctions. Citing insights from individuals familiar with the situation, the Frankfurt-based regulatory body has purportedly dispatched letters to these financial institutions, requesting an "action plan" outlining their exit strategy from the Russian market as soon as next month.
Several prominent EU banks, including Austria's Raiffeisen Bank International (RBI), Italy's UniCredit, Dutch lender ING, Germany's Commerzbank and Deutsche Bank, Hungary's OTP Bank, Italy's Intesa SanPaolo, and Sweden's SEB, continue to maintain a presence in Russia despite the imposition of Western sanctions stemming from the Ukraine conflict.
Recent scrutiny from US financial authorities has intensified concerns for banks like UniCredit and RBI, both of which boast over three decades of operation in Russia. According to Reuters, these institutions have encountered heightened regulatory scrutiny, with RBI allegedly facing the threat of exclusion from the American financial system.
In response to escalating pressures and regulatory challenges, RBI, headquartered in Vienna, recently abandoned plans for a deal involving the exchange of assets between Russia and the EU. The proposed agreement, which aimed to swap holdings involving assets linked to sanctions-affected Russian billionaire Oleg Deripaska, was anticipated to mitigate risks associated with ongoing geopolitical tensions and regulatory scrutiny.
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