However, due to the sanctions imposed on Russia, some of Swedbank’s customers who are not subject to any sanctions may find it difficult to withdraw their savings if they are invested in a Russian fund.
The war in Ukraine may also affect access to investment. Swedbank customer Oskars Irbītis is convinced of this. He wanted to withdraw 15 years of life insurance savings from the bank, but was refused because part of the funds were frozen in Russia. The Financial and Capital Market Commission points out that around 1,700 people could find themselves in a similar situation. In general, the life insurance savings invested in Russia are small and do not exceed 0.5% of the total savings, reports LTV program “Panorama”.
Oskars Irbītis’ life insurance savings at Swedbank at the end of last year were around 7,000 euros. Since the beginning of the year, the value has started to fall sharply. Not believing that the situation would improve and considering that money was needed now, Irbītis asked the bank to pay the savings.
“Several days have passed and I have received an answer that this is not possible because part of these funds is in a fund that has been suspended. In fact, these funds have been seized. In this case, it is the Swedbank Russia fund. [..] How does it happen that my funds work for a public financial structure hostile to my country? ” expressed Irbitis.
In total, slightly more than 10% of the savings were invested in Russia. Now the bank has recommended to write a new application, in which to ask to pay only the unfrozen part of the savings. Irbītis explained that he had chosen a dynamic investment plan and did not follow exactly where the bank invests money, because he trusted Swedbank’s experts.
“Personally, I have come to terms with the fact that large funds have been lost in the funds this year. But I am not willing to accept that funds are being invested somewhere where they can no longer be recovered, ”said Irbītis.
Meanwhile, Swedbank has its own version of what happened. An old type of contract has been concluded with Irbīte, where the customer is responsible for exactly where the money is invested.
“Until 2014, such agreements have been concluded, the client has, in principle, had the choice of where to divide his investment, ie the monthly payments he has made in this savings. He has determined how much he wants to invest in, for example, Western Europe, the USA, Russia or other stock markets, ”explained Jānis Krops, a representative of Swedbank.
However, Irbītis denies that he has ever given tasks in which country or fund to invest. He just chose a strategy. In addition, the stock portfolio has changed many times since 2007 without his involvement.
Meanwhile, the Financial and Capital Market Commission indicated that about 1,700 people could be in a similar situation.
For such a number of customers, part of life insurance savings is invested in Russia or related funds. The total amount is about one and a half million euros, so 900 euros per investor.
Evija Dundure, Director of the FCMC Insurance and Pension Supervision Department, admits that at least part of this money will still be recoverable, especially if the purchased Russian fund has also invested in other countries. “At the moment, neither the bank nor the insurer is in a position to change this. If a fund is suspended, you simply have to wait for it to resume. [..] I would now offer to trust the fund managers who manage the situation, take into account the risks and opportunities and use the best time to realize these assets, ”explained Dundure.
Meanwhile, Swedbank advised Irbītis to continue contacting the bank to discuss the situation. Irbītis, who considers the bank to be co-responsible, said that he would be happy with the bank’s hospitality and discounts for other banking services.
On the other hand, investments of pension funds in Russia are insignificant. Tier 3 pension funds have no investments at all in Russia, while tier 2 pension funds could mostly have four million euros out of a total of six billion indirectly related to Russia, the FCMC pointed out.
–
