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

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

MOSCOW, July 15 (Reuters) – Russia will block the sale of international banks’ Russian subsidiaries although Russian banking companies overseas cannot purpose ordinarily, the Interfax information company cited Deputy Finance Minister Alexei Moiseev as saying on Friday.

“We mentioned this at our subcommission, that we will not now, right up until the predicament enhances, give authorization for the sale of international banks’ subsidiaries and their property in Russia,” Interfax quoted Moiseev as indicating.

Russia’s central lender is resisting domestic phone calls to just take around the working of foreign lenders’ local corporations, two sources with direct know-how of the make any difference have informed Reuters, concerned in section that this could prompt depositors to pull out funds. examine additional

Moiseev did not rule out that the finance ministry could aid the plan of placing banks’ Russian subsidiaries less than the regulate of Russian state banks in the long term, RIA news agency claimed.

French lender Societe Generale (SOGN.PA) has bought its Rosbank device to Interros Capital, a business linked to Russian oligarch Vladimir Potanin, but other people, including Raiffeisen (RBIV.VI), UniCredit (CRDI.MI) and Citi (C.N), the largest three units of Western financial institutions in Russia, are nevertheless exploring possibilities.

Those a few held 3.5 trillion roubles ($60.3 billion) in property in contrast with 38 trillion roubles at best Russian participant Sberbank (SBER.MM) at the conclusion of 2021, when foreign banks accounted for 11% of full Russian banking money, the newest info demonstrates.

The West imposed unprecedented sanctions on Russia’s banking sector about Russia’s steps in Ukraine, blocking major financial institutions from the SWIFT worldwide payments program and limiting their ability to run with foreign currencies.

In April, subsequent the imposition of sanctions, VTB in Europe was no lengthier authorized to take guidance from mother or father bank VTB (VTBR.MM), Russia’s No.2 lender, and property were reduce off. read through far more

($1 = 58.0480 roubles)

Reporting by Reuters, Modifying by Louise Heavens

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