The European Central Bank (ECB) is stepping up pressure on banks to exit Russia.
The Financial Times described how the eurozone central bank is pressuring eurozone banks to reduce their Russian holdings.
The ECB believes that since the time for the sale of these assets is running out after the Kremlin has become “more hostile” to such steps.
Andrea Enria, head of surveillance at the European Central Bank, says “many banks have taken steps” to reduce their influence in Russia after its troops swept into Ukraine almost a year ago, but he added that he would welcome “whether what an opportunity for banks to get.
Many of the 45 Western banks with subsidiaries in Russia have tried to leave the country, but only a few have done so, often at great cost to themselves. The two most risky banks are under ECB supervision: the Austrian Raiffeisen Bank International and the Italian UniCredit.
Western banks’ plans to quickly exit Russia were dealt a blow last year when President Putin said foreign owners from “unfriendly” countries could not finalize agreements without his approval.
The window for selling is closing a bit,” Enria told the publication.
French Société Générale is one of the few Western banks to complete the sale of its Russian subsidiary. The agreement, concluded with Russian oligarch Vladimir Potanin, a close ally of the Kremlin, cost 3.1 billion euros. Both Raiffeisen and UniCredit say they are looking for a way out of Russia, but no real steps are yet in sight.
Until February 24, 206 foreign (mostly Western) financial institutions worked in Russia, 320 days after the invasion, only six institutions completely exited the Russian market, according to the Leave Russia project from the KSE Institute.
Societe Generale, Home Credit, PPF left the major players, and the business payment systems of Deutsche Bank, BNP Paribas, Bank of China, Commerzbank, Citigroup, Pekao SA and others are winding down or stopping.
Remained Raiffeisen Bank International, UniCredit Group, Morgan Stanley, OTP Bank, Credit Europe Bank, Crédit Agricole, some Chinese and Japanese institutions.
The National Bank of Ukraine said that they consider it unacceptable that some international banks in the eleventh month of the war did not make final decisions to exit the Russian market.
The Raiffeisen Bank International (RBI) group has responded to the National Bank’s call to make a final decision to withdraw from the Russian market. The group said it was considering a “carefully planned bank exit” and also admitted to providing benefits to the Russian military.
Source: Racurs
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.