Sberbank’s European subsidiaries placed under payment moratorium amid sanctions

EU’s Single Resolution Board has enforced payment moratorium on three European subsidiaries of Russian bank Sberbank, which is under US-led sanction, and is accessing whether any resolution action would be need to to protect public interest.

The moratorium on Sberbank Europe AG, Sberbank (Croatia) or Sberbank banka (Slovenia) will last through the end of March 1.

Depositor are allowed to withdraw a daily allowance amount determined by their national resolution authorities.

The ECB earlier on Monday said the three Sberbank units are “likely to fail owing to a deterioration of their liquidity situation,” as they are experiencing a “significant deposit outflows as a result of the reputational impact of geopolitical tensions.”

Sources:
– Single Resolution Board
– ECB