Russia’s main bank, Sberbank Group, announced today that it is withdrawing from the European market because it was hit by huge financial sanctions that were introduced in response to the Russian invasion of Ukraine, Russian news agencies reported.
“Sberbank has decided to withdraw from the European market due to the current situation,” the statement said.
It is added that the branches of that bank “are facing an abnormal outflow of funds and threats to the safety of employees”.
Sberbank is not able to provide liquidity to its European branches, due to the order of the Central Bank of Russia.
The bank was present in eight European countries, Germany, Austria, Croatia, the Czech Republic, Hungary, Slovenia, Serbia and Bosnia and Herzegovina.
“Sberbank Group’s European subsidiaries have a high level of capital and assets, and clients’ funds are insured in accordance with local laws,” the bank said.
The banking regulator of the European Union announced on Tuesday night that bankruptcy proceedings will be opened for the main branch of Sberbank in Europe.
Sberbank Europe AG, the main branch in Europe, with its headquarters in Austria, which employs almost 4,000 people, will be the subject of “insolvency proceedings” in that country, the EU body announced.