Financial sanctions over Russia’s invasion of Ukraine have hit the EU subsidiary of Russia’s Sberbank hard. She is on the brink of extinction.
The European subsidiary of the Russian Sberbank, which is affected by sanctions, has to stop operations. The Austrian Financial Market Authority (FMA) announced that the Vienna-based bank had to end all transactions with immediate effect.
The move came at the direction of the European Central Bank (ECB), which on Sunday determined that Sberbank Europe AG may be facing insolvency due to the Russian invasion of Ukraine and massive outflows of funds.
A reorganization or resolution of the bank under the European
Bank restructuring and resolution guidelines are not in the public interest, it said.
Because of the expected economic difficulties, the FMA had previously prohibited transfers, transactions and larger payments.
The majority state bank Sberbank and its European subsidiary have been sanctioned by the United States. However, according to diplomats, the exclusion of several Russian banks from the Swift international payment system will not directly affect Sberbank.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
