Russian banks claim to ignore the effects of Washington’s sanctions imposed following Russia’s invasion of Ukraine and continue to function normally.
Sberbank, Russia’s largest bank, said it is investigating the impact of US sanctions. “Sberbank and all its systems are working properly and their funds and services are fully available to individuals and businesses. We are preparing for the development of the situation and of the interests of our funds, assets and clients. We have prepared a scenario to guarantee protection, “says the bank. Said To a Russian news agency.
Russia’s largest private bank, Alfa Bank, has revealed that it is blocking the issuance of shares and new eurobonds. However, because it is not a public company, stock restrictions do not affect institutions.
Gazprombank claimed to serve both corporate and individual customers as usual to ensure that customers have uninterrupted access to the bank’s products and services. According to VTB Bank, online services, ATMs and branches are working fine. Russia’s online bank, Tinkoff, claimed that it had “sufficient liquidity” and was replenishing ATMs with an “enhanced schedule.”
The Russian central bank reportedly decided to intervene in the foreign exchange market to stabilize the country’s financial markets. The central bank also said it is acting to provide sufficient liquidity to the country’s banking sector and is ready to use additional tools to ensure the stability of Russian banks and their customers. ..
On February 24, the US Treasury announced “unprecedented widespread” sanctions against Russia. Specifically, it targets Sberbank and VTB, as well as approximately 90 financial institution subsidiaries around the world.
Together, Russian financial institutions trade about $ 46 billion worth of foreign exchange internationally each day, 80% of which is in the US dollar. Most of these transactions are “now suspended,” the Treasury said. Press release..
Sberbank and VTB, which account for more than 50% of the total Russian banking system in terms of asset value, will be separated from the processing of payments through the US financial system.
The Office of Foreign Assets Control (OFAC) of the Ministry of Finance will close “Sberbank correspondents or payable accounts” to all US financial institutions and refuse future transactions involving Russian banks or their subsidiaries. I instructed you to. OFAC has imposed “complete block sanctions” on VTB Bank and entities directly or indirectly owned by the bank by 50% or more.
In addition, three major Russian financial institutions (Sovcom, Novikom, and Otkritie) are licensed by OFAC. The organization also “strictly restricted” 13 major Russian companies important to the Russian economy from raising funds through the US market, including Sberbank, Alfa Bank and Gazprombank.
Meanwhile, the Ukrainian central bank is blocking payments to Belarusian and Russian entities. It also banned financial operations, including the currencies of these two countries.
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Naveen Athrappully is a news reporter covering business and global events in The Epoch Times.