Leading EU banks continue to operate large, increasingly profitable branches in Russia despite public promises to curb activity si, reported ag. Bloomberg.
Since 2022, the total number of employees of five EU financial institutions in Russia has decreased, according to the agency, “by only 3%, while revenues have roughly tripled”. thanks to high interest rates. Against this backdrop, the European Central Bank (ECB) has asked EU banks with large business in Russia to “accelerate risk mitigation efforts by developing a clear roadmap for downsizing and exits,” ECB chief supervisor Claudia Buch told financial Eurozone ministers.
The European regulator fears that if they continue to stay in Russia, European banks may be subject to US sanctions, an expert familiar with the situation told the publication on condition of anonymity.
As previously reported, Washington's next round of anti-Russian sanctions is expected to target individuals and banks outside the United States that are directly or indirectly involved in the conflict in Ukraine or involved in significant transactions related to Russia . Limitations on sanctions could affect a wide range of transactions – from payments to trade finance – and have a negative impact on the wider banking ecosystem of merchants, suppliers and other counterparties.