Russia's biggest lender, Sberbank, announced on Wednesday it was pulling out of almost all European markets, after it said it faced big cash outflows and threats to its employees and branches.
The state-controlled bank said in a statement that its European subsidiaries had faced "abnormal cash outflows", meaning it was no longer able to supply them with liquidity. However, Sberbank said it had sufficient capital and asset quality to to pay all depositors.
Sberbank’s announcement came after the European Central Bank (ECB) had ordered closure of Sberbank's European arm, warning it could fail after a run on deposits sparked by Russia's invasion.
Since the beginning of Russia's "special operation" in Ukraine, Western governments have been taking extreme measures to isolate Russia's economy and financial system. These measures include sanctions on Russia's central bank , and blocking Russia’s access to the SWIFT international banking payment system.
Sberbank has been operating in Germany, Austria, and Croatia among other countries, and had European assets worth €13bn ($14.39bn) as of Dec. 31, 2020.
It's worth noting that the exit won't affect the bank's operations in Switzerland.
