Sberbank, Russia’s Largest Bank To Pull Out Of European Market

Russia’s largest bank, Sberbank, will reportedly leave the European market, amid the geopolitical tensions.

Russia’s largest financial institution, Sberbank, will reportedly pull out from the European market, as a result of the economic sanctions against Russia. According to the bank its subsidiaries around Europe face large cash outflows while the safety of its employees is threatened.

Sberbank has been pro-crypto over the past several months.

Russia’s economy is taking a serious hit after the Western world’s monetary sanctions imposed on it. The announcement of cutting off certain Russian banks from the global payment system SWIFT, among other financial bans, has sent ruble tumbling. The measures also started affecting giant banks like Sberbank.

According to a Reuters report, the institution will stop supplying liquidity to its European subdivisions. Sberbank has confirmed that it has sufficient capital and asset quality to pay all depositors.

“In the current situation, Sberbank has decided to leave the European market. The group’s subsidiary banks have faced abnormal cash outflows and threats to the safety of its employees and branches,” the bank stated.

The European Central Bank (ECB) ordered earlier this week the closure of Sberbank’s European arm, saying it faced failure due to a run on deposits after Russia invaded Ukraine.

Sberbank has operations in Austria, Germany, Croatia, Hungary, among others. Its European assets are worth over $14 billion.

Switzerland (not part of the EU) will not exclude Sberbank’s operations on its territory.