DUBAI, March 31. /TASS/. The Central Bank of the United Arab Emirates (UAE) has decided to cancel Russian MTS Bank’s license for banking operations in the country, according to a statement released on the website of the country’s regulator on Friday.

"The Central Bank of the UAE announced that it has been decided to cancel MTS Bank’s Abu Dhabi license, wind down its operations within six months from the date of the decision, under the supervision of the Central Bank, and close the branch," the statement reads.

The decision comes after consideration of available options regarding the new status of the bank, and it also takes into account the sanctions risks, the regulator explained. "During the winding down, the branch will be prohibited from opening new accounts and conducting transactions, except for clearing prior obligations and the bank’s use of Central Bank’s payment systems will be restricted to this purpose only," the statement said.

MTS Bank obtained the UAE Central Bank’s license on January 1, 2023, becoming the first foreign lender to undergo the licensing procedure over the past several years. On February 24, MTS Bank was sanctioned within the framework of another package of sanctions imposed by the US and the UK against Russia. Amid this background the Central Bank of the United Arab Emirates said that it was considering options of the bank's further work in the country.