Russia’s largest bank leaves EU citing threat to employees and branches

New Delhi, March 2 (SocialNews.XYZ) Russia's key state bank has revealed that it will pull out of the European Union's financial markets, citing threats to the safety of employees and its branches in the wake of Moscow's attack on Ukraine.

In a statement on Wednesday, Sberbank announced that the decision had been made as a result of its subsidiary banks facing "an abnormal outflow of funds". The financial giant also claimed that its employees and branches were under threat, RT reported.

"Due to the instruction of Russia's Central Bank, Sberbank (Russia) will not be able to supply liquidity to its European subsidiaries," the notice read, after the institution took measures to preserve its foreign currency.

However, it offered reassurances that its subsidiary banks had "a high level of capital and quality of assets", and that customer deposits were "insured in line with local legislation".

The departure of Russia's largest lender from the EU does not impact its business in Switzerland, which it said is continuing to operate normally, as it has "a sufficient level of capital and assets to continue its activities", RT reported.

Sberbank had been operational in a number of EU member states, including Germany, Austria, Croatia, and Hungary, and boasted European assets worth over $14.4bn at the end of 2020.

Source: IANS