Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict

Russian authorities are planning to block foreign banks from pulling out of the country as long as its banks cannot operate normally overseas, Interfax reported.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

In late February, Moscow approved the launch of a military offensive against Ukraine.

Following the invasion, the US-led Western alliance imposed severe sanctions targeting the Russian banking sector, among others.

Speaking to reporters, Russian Deputy Finance Minister Alexei Moiseyev said: “Our state-owned banks, which are under sanctions, and our banks in general that are under sanctions, have had quite big problems with debottlenecking at their banks located abroad.

“In some cases, they [foreign regulators] have even been seen to take away the shareholder’s right to manage them, which is true legal chaos.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Following the discussion with the subcommittee, no foreign banks in Russia will be allowed to sell their assets until the situation improves, the minister said, adding that even if requests are received, they will be rejected.

“We are talking about the subsidiaries of foreign banks. Everyone knows their names. It turns out that we are letting them go normally – Rosbank and the like – while ours cannot do anything there,” the minister noted.

Moiseyev did not rule out the prospect of transferring foreign banks’ subsidiaries to local lenders but at this stage, there are no such plans.

Italian banking major UniCredit and US lender Citi are among the banks looking to exit Russia and stand to lose billions of dollars in the worst-case scenario.