Russia to block sale of foreign banks’ Russian subsidiaries -Ifax cites finance ministry

Nationwide flag flies above the Russian Central Bank headquarters in Moscow, Russia May possibly 27, 2022. REUTERS/Maxim Shemetov

MOSCOW, July 15 (Reuters) – Russia will block the sale of overseas banks’ Russian subsidiaries while Russian banking companies abroad are not able to functionality ordinarily, the Interfax news agency cited Deputy Finance Minister Alexei Moiseev as declaring on Friday.

“We talked over this at our subcommission, that we will not now, until finally the problem enhances, give permission for the sale of foreign banks’ subsidiaries and their assets in Russia,” Interfax quoted Moiseev as expressing.

Russia’s central lender is resisting domestic calls to consider about the jogging of international lenders’ local businesses, two resources with direct awareness of the issue have instructed Reuters, involved in section that this could prompt depositors to pull out cash. browse extra

Moiseev did not rule out that the finance ministry could assist the concept of positioning banks’ Russian subsidiaries less than the control of Russian state banking companies in the foreseeable future, RIA information agency described.

French lender Societe Generale (SOGN.PA) has marketed its Rosbank unit to Interros Money, a firm linked to Russian oligarch Vladimir Potanin, but many others, like Raiffeisen (RBIV.VI), UniCredit (CRDI.MI) and Citi (C.N), the most significant three units of Western banks in Russia, are however discovering selections.

Individuals a few held 3.5 trillion roubles ($60.3 billion) in belongings when compared with 38 trillion roubles at leading Russian player Sberbank (SBER.MM) at the end of 2021, when overseas banks accounted for 11% of complete Russian banking funds, the most current info reveals.

The West imposed unparalleled sanctions on Russia’s banking sector over Russia’s steps in Ukraine, blocking important banks from the SWIFT worldwide payments system and limiting their skill to operate with international currencies.

In April, pursuing the imposition of sanctions, VTB in Europe was no for a longer period permitted to acquire instructions from dad or mum bank VTB (VTBR.MM), Russia’s No.2 loan company, and property had been slash off. read through far more

($1 = 58.0480 roubles)

Reporting by Reuters, Modifying by Louise Heavens

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