Russian top lender Sberbank has said it is quitting almost every European market in the wake of mounting sanctions against Moscow, according to Reuters.
- Sberbank attributes the decision to massive cash outflows and threats following the ongoing crisis between Russia and Ukraine.
- The lender says it faced failure as it ran out of deposits, although it has enough resources to pay the depositors.
- The bank says it could no longer provide liquidity to its subsidiaries in Europe due to an order imposed by Moscow to protect the foreign currency.
- The move by Sberbank comes even as the EU announced seven banks that will be cut off from the SWIFT network.
- The announced move happened when Sberbank’s net profit rose by 64% in 2021 to hit 1.25 trillion rubles or $12.38 billion.
Sberbank had around 13 billion euros or $14.4 billion in European assets as of the close of 2020. It operates in countries that include Austria, Germany, Croatia, and Hungary.