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

National flag flies above the Russian Central Bank headquarters in Moscow, Russia May 27, 2022. REUTERS/Maxim Shemetov

MOSCOW, July 15 (Reuters) – Russia will block the sale of international banks’ Russian subsidiaries while Russian financial institutions abroad can’t function normally, the Interfax news agency cited Deputy Finance Minister Alexei Moiseev as expressing on Friday.

“We reviewed this at our subcommission, that we will not now, until finally the problem enhances, give authorization for the sale of overseas banks’ subsidiaries and their property in Russia,” Interfax quoted Moiseev as indicating.

Russia’s central lender is resisting domestic calls to consider over the running of foreign lenders’ local enterprises, two sources with direct understanding of the make a difference have advised Reuters, concerned in element that this could prompt depositors to pull out money. read extra

Moiseev did not rule out that the finance ministry could support the plan of putting banks’ Russian subsidiaries underneath the regulate of Russian point out banks in the foreseeable future, RIA news company reported.

French lender Societe Generale (SOGN.PA) has marketed its Rosbank unit to Interros Cash, a company linked to Russian oligarch Vladimir Potanin, but other individuals, which includes Raiffeisen (RBIV.VI), UniCredit (CRDI.MI) and Citi (C.N), the greatest a few units of Western banking companies in Russia, are nevertheless discovering choices.

People three held 3.5 trillion roubles ($60.3 billion) in property when compared with 38 trillion roubles at top rated Russian player Sberbank (SBER.MM) at the finish of 2021, when international banking institutions accounted for 11% of overall Russian banking funds, the most current knowledge reveals.

The West imposed unparalleled sanctions on Russia’s banking sector in excess of Russia’s actions in Ukraine, blocking main banking institutions from the SWIFT international payments method and restricting their capacity to work with overseas currencies.

In April, following the imposition of sanctions, VTB in Europe was no more time permitted to acquire directions from mother or father lender VTB (VTBR.MM), Russia’s No.2 lender, and property have been cut off. browse much more

($1 = 58.0480 roubles)

Reporting by Reuters, Editing by Louise Heavens

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