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

Nationwide flag flies about the Russian Central Bank headquarters in Moscow, Russia Might 27, 2022. REUTERS/Maxim Shemetov

MOSCOW, July 15 (Reuters) – Russia will block the sale of overseas banks’ Russian subsidiaries though Russian banking institutions overseas can’t operate usually, the Interfax information agency cited Deputy Finance Minister Alexei Moiseev as indicating on Friday.

“We talked over this at our subcommission, that we will not now, right up until the problem improves, give permission for the sale of international banks’ subsidiaries and their property in Russia,” Interfax quoted Moiseev as expressing.

Russia’s central lender is resisting domestic calls to take more than the running of foreign lenders’ area enterprises, two resources with direct understanding of the matter have explained to Reuters, concerned in section that this could prompt depositors to pull out cash. examine much more

Moiseev did not rule out that the finance ministry could aid the strategy of placing banks’ Russian subsidiaries underneath the handle of Russian condition banking institutions in the potential, RIA news agency described.

French loan provider Societe Generale (SOGN.PA) has marketed its Rosbank device to Interros Cash, a organization joined to Russian oligarch Vladimir Potanin, but other individuals, which includes Raiffeisen (RBIV.VI), UniCredit (CRDI.MI) and Citi (C.N), the biggest a few models of Western banking institutions in Russia, are still discovering possibilities.

Those people a few held 3.5 trillion roubles ($60.3 billion) in assets in comparison with 38 trillion roubles at top rated Russian player Sberbank (SBER.MM) at the conclude of 2021, when international financial institutions accounted for 11% of full Russian banking capital, the most recent details shows.

The West imposed unprecedented sanctions on Russia’s banking sector around Russia’s steps in Ukraine, blocking significant banks from the SWIFT global payments system and limiting their capacity to operate with international currencies.

In April, pursuing the imposition of sanctions, VTB in Europe was no for a longer period permitted to choose directions from father or mother bank VTB (VTBR.MM), Russia’s No.2 financial institution, and property had been slice off. go through extra

($1 = 58.0480 roubles)

Reporting by Reuters, Enhancing by Louise Heavens

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