Sberbank leaving European market

Business & Economy March 02, 9:21

The group’s affiliates are facing an abnormal outflow of funds and the security threat for staff and offices, the statement reads

MOSCOW, March 2. /TASS/. Sberbank has announced leaving the European market, according to a statement released by Russia’s top lender on Wednesday.

"In the current situation Sberbank decided to leave the European market. The group’s affiliates are facing an abnormal outflow of funds and the security threat for staff and offices," the bank said.

Due to the Russian Central Bank’s instruction Sberbank will not be able to provide liquidity to European affiliates, according to the statement.

"Meanwhile Sberbank’s affiliates have high level of capital and quality of assets, clients’ deposits are ensured in conformity with local law. The bank’s assets are sufficient for making payments to all depositors," the bank said.

Earlier on Wednesday Austria’s financial regulator prohibited commercial activities of Sberbank Europe AG, Sberbank’s subsidiary, at the request of the European Central Bank, whereas the Czech National Bank launched steps towards the revocation of the banking licence of Sberbank CZ (a subsidiary of Sberbank) at the beginning of this week.

That said, Sberbank managed to close the deal on sale of Sberbank Srbija to Serbia’s AIK Banka on February 28.

Sberbank Europe AG is a banking group consisting of assets of Sberbank Group in Eastern and Central Europe. Headquartered in Vienna, Sberbank Europe AG is wholly owned by Sberbank. Sberbank Europe operated on eight European markets: in Austria, Bosnia and Herzegovina in Sarajevo and Banja Luka, in Croatia, the Czech Republic, Hungary, Slovenia, Serbia, and Germany.

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