Top Russian Bank Quits Europe, Citing Sanctions: Report

The European Central Bank had ordered the closure of Sberbank's European unit over Ukraine conflict.

By Sandali Handagama

Mar 2, 2022 at 12:55 p.m. UTC

Updated Mar 2, 2022 at 8:12 p.m. UTC

Sberbank is dropping out of EU markets citing sanctions (Milan Jaros/Bloomberg via Getty Images)

Sandali Handagama

Sandali Handagama is a CoinDesk reporter with a focus on crypto regulation and policy. She does not own any crypto.

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Sberbank, one of Russia's largest state-controlled banks, is dropping out of almost all European markets citing Western sanctions following Russia's invasion of Ukraine, Reuters reported Wednesday.

According to the report, the bank suffered large outflows of cash and threats to its staff and property.
On Tuesday, the European Central Bank (ECB) ordered the closure of Sberbank's European unit after a run on deposits following Russia's invasion of Ukraine last week.
Sberbank's European assets were valued at 13 billion euros ($14.4 billion) at the end of 2020, according to the report. The bank operated in several European countries, including Austria, Croatia, Germany and Hungary.
Sberbank has used blockchain technology for banking, launching numerous initiatives over the last few years. In January 2021, it filed to launch its own stablecoin, a private cryptocurrency linked to the value of real assets like the U.S. dollar.
The European Union said Wednesday it banned seven Russian banks from the international financial messaging system SWIFT as a result of the military operations in Ukraine. The union has planned a historic support package for Ukraine, which includes 450 million euros worth of lethal weapons to aid Ukraine as it stands against Russia.

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