The European subsidiary of Russia’s largest bank is on the verge of bankruptcy
The European Union banking regulator announced on Tuesday that bankruptcy proceedings will be opened The main European subsidiary of SberbankRussia’s largest bank. The assets of the subsidiary, registered in Austria and employing 4,000 people, will be covered by up to 100,000 euros, as indicated by European legislation, single decision boardResponsible for monitoring banks in crises.
Although Sberbank was not excluded from Information system for international payments SWIFTThe institution was suffering from a serious cash flow problem as it was unable to obtain loans due to the sanctions imposed by the European Union. There was no possibility that the parent company would support the subsidiary because the Russian Central Bank prohibits this type of transfer to sanctioning countries. On the other hand, the European regulator indicated that a solution was found for other subsidiaries owned by the Russian Bank in Croatia and Slovenia,
Bloomberg reported on Tuesday that seven Russian entities will be suspended from Swift, at the request of the European Union. The list includes VTB (the second largest bank in the country), Rossiya, Otkritie, Novikombank, Promsvyazbank, Sovcombank and VEB. In addition to Sberbank, Gazprombank, which is linked to the gas giant Gazprom and owned by its pension fund, was excluded from the list. European sanctions have avoided compromising the Russian energy sector, on which several European countries depend for their oil and gas supplies. (afp)