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

National flag flies in excess of the Russian Central Bank headquarters in Moscow, Russia May perhaps 27, 2022. REUTERS/Maxim Shemetov

MOSCOW, July 15 (Reuters) – Russia will block the sale of international banks’ Russian subsidiaries whilst Russian financial institutions overseas cannot purpose typically, the Interfax information agency cited Deputy Finance Minister Alexei Moiseev as declaring on Friday.

“We mentioned this at our subcommission, that we will not now, till the scenario improves, give authorization for the sale of international banks’ subsidiaries and their assets in Russia,” Interfax quoted Moiseev as stating.

Russia’s central bank is resisting domestic phone calls to take more than the operating of overseas lenders’ regional firms, two resources with direct information of the make any difference have explained to Reuters, worried in section that this could prompt depositors to pull out cash. go through additional

Moiseev did not rule out that the finance ministry could help the strategy of placing banks’ Russian subsidiaries underneath the control of Russian point out banking companies in the long term, RIA news company claimed.

French loan provider Societe Generale (SOGN.PA) has offered its Rosbank unit to Interros Funds, a business joined to Russian oligarch Vladimir Potanin, but other folks, such as Raiffeisen (RBIV.VI), UniCredit (CRDI.MI) and Citi (C.N), the major 3 units of Western banks in Russia, are nevertheless checking out solutions.

People a few held 3.5 trillion roubles ($60.3 billion) in property in contrast with 38 trillion roubles at top Russian player Sberbank (SBER.MM) at the stop of 2021, when foreign financial institutions accounted for 11% of whole Russian banking money, the newest information shows.

The West imposed unprecedented sanctions on Russia’s banking sector above Russia’s steps in Ukraine, blocking key banking companies from the SWIFT world wide payments system and restricting their capability to run with international currencies.

In April, pursuing the imposition of sanctions, VTB in Europe was no more time allowed to just take directions from mum or dad bank VTB (VTBR.MM), Russia’s No.2 lender, and property ended up reduce off. read through additional

($1 = 58.0480 roubles)

Reporting by Reuters, Enhancing by Louise Heavens

Our Criteria: The Thomson Reuters Belief Ideas.