FRANKFURT, June 13 (Reuters) – Euro zone banks in Russia ought to go away rapidly, the bloc’s high supervisor mentioned on Tuesday, making a uncommon express name on these lenders to wind down operations greater than a 12 months after Russia’s invasion of Ukraine.
“I feel that it’s important that banks stay very targeted on decreasing additional their exposures and, ideally, exiting the market as quickly as they will,” Andrea Enria, the European Central Financial institution’s chief supervisor, instructed a convention.
Greater than a 12 months into the conflict in Ukraine, a handful of European banks, together with Austria’s Raiffeisen Financial institution Worldwide (RBIV.VI) and Italy’s UniCredit (CRDI.MI), are nonetheless making a living in Russia.
Enria acknowledged that banks had been not granting new loans in Russia and that it was tough to promote because of strain from Moscow, together with a requirement for presidential approval. However he underscored the necessity for additional motion.
“This can be a course of that we not solely reward, however we strongly pressurise banks to carry out as a result of there’s a enormous reputational danger (concerned) in persevering with to function in Russia,” he mentioned.
Raiffeisen and UniCredit, which each say are shrinking their companies in Russia, play an essential function for Russia’s financial system, which is grappling with sweeping Western sanctions.
Raiffeisen, crucial Western financial institution in Russia, has mentioned it’s inspecting a spin-off or sale.
Reporting by Balazs Koranyi; writing by John O’Donnell; Modifying by Andrew Heavens and Emelia Sithole-Matarise
Our Requirements: The Thomson Reuters Belief Rules.
