The EU subsidiary of the state-run bank is insolvent.
(Photo: Reuters)
Vienna According to the European Central Bank, Sberbank Europe AG, a wholly owned subsidiary of Sberbank Russia, and its Croatian and Slovenian branches are or will soon be insolvent.
“Sberbank Europe AG and its subsidiaries have experienced significant deposit outflows due to the impact of geopolitical tensions on their reputation,” the ECB explains. “This caused their cash position to deteriorate.”
There is no way that would offer a realistic chance of restoring liquidity. Russia is the majority owner of the bank. The Russian central bank said last week that the financial institutions in Russia were well-armed against the latest Western sanctions.
The bank said in a statement Monday it wanted to protect its customers and maintain the bank’s critical functions. “We are making every effort and fully supporting the authorities to use their powers to manage this unprecedented situation in the interests of customers,” says Sonja Sarközi, CEO of Sberbank Europe.
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With the exclusion of various Russian credit institutions from the Swift payment network, there could be a wave of upheaval in the international banking system, as Credit Suisse explains.
According to its own statements, Sberbank Europe AG operates in eight countries in Central and Eastern Europe. According to the bank, it has around 800,000 customers, operates 187 branches and has more than 3,900 employees.
More: Asia’s markets start unevenly after the package of sanctions – Moscow postpones the start of the stock exchange, the ruble collapses