Many large Russian banks begin to set up branches in eastern Ukraine
Date
9/17/2024 2:44:01 AM
(MENAFN) A British newspaper reported that several of Russia's largest banks have begun establishing branches in eastern Ukraine as Moscow seeks to solidify its control over the territories it has captured. The Kremlin has been encouraging companies to move into Ukrainian regions that fell under its control following the onset of the war in 2022.
Despite many brands steering clear of these areas due to concerns over Western sanctions and the inherent risks of operating in a conflict zone, Russia's biggest state banks, Sberbank and VTB, have started to comply with this push. According to the newspaper, these banks have opened 130 ATMs and 48 branches in what Moscow refers to as its "new regions" in eastern Ukraine. They claim to have already served around 70,000 people and are planning further expansion in these areas.
Russian President Vladimir Putin has urged state-owned companies to establish operations in eastern and southern Ukraine, calling on Russian financial leaders to engage with these territories more vigorously. He pointed out that the feared sanctions have already been imposed, implying there is no longer any reason for hesitation.
VTB Bank, which has been under sanctions since 2022, also announced plans to begin serving clients in its Mariupol offices by the end of the year. Its president, Andrey Kostin, was recently photographed inaugurating the bank's first branch in the captured Ukrainian city of Luhansk, signaling a further deepening of Russian financial presence in the region.
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