Closure of Russia's Sberbank European Subsidiary... First Case of Bankruptcy Due to Western Sanctions

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Hyunjung] The European subsidiary of Sberbank, Russia's largest bank, is scheduled to be closed by order of the European Central Bank (ECB), the Financial Market Authority (FMA) announced on the 2nd (local time). This is expected to be the first bankruptcy case following Western sanctions against Russia.

The ECB had already warned of the bankruptcy of these banks as a massive withdrawal of deposits occurred due to Russia's invasion of Ukraine.

According to major foreign media, the FMA stated in a press release on the day, "Following the ECB's order, Austria's FMA has decided to immediately suspend all operations of the licensed credit institution 'Sberbank Europe AG.'"

On the same day, the Single Resolution Board (SRB) of the European Union (EU) announced that it would sell all shares of Sberbank's Croatian subsidiary to Hrvatska Po?tanska Banka and the shares of the Slovenian subsidiary to Nova Ljubljanska Banka.

This content was produced with the assistance of AI translation services.