The head of the European Central Bank’s supervisory board, Andrea Enrea, said on Tuesday that the bank wants eurozone banks to accelerate their exit from Russia, given the increased reputational, legal and financial risks.
Enria has been repeating these comments for months, saying he hopes European financial institutions will cut ties with their Russian assets, but this has taken on new significance after the Wagner private military group’s 24-hour mutiny on Saturday highlighted Russia’s political fragility.
In a letter to MEPs, Enria said: “The ECB Supervisory Board urged these banks to accelerate their downsizing and exit strategies by adopting clear road maps and reporting regularly to their governing bodies and to the ECB Banking Supervisory Board on the implementation of these plans. “.
Reuters reported last month that the Austrian bank, Raffaisen Bank International, one of the euro zone banks most closely linked to Russia, has stepped up its moves to hand over its Russian unit to shareholders, amid mounting pressure to do so. The bank’s chief executive, Johan Strobel, said it was working “to the fullest” on a solution.
Europe is working, in coordination with the United States, to confirm the isolation of the Russian financial system from the global financial system, to put pressure on it and prevent it from financing its war in Ukraine. Under these conditions, it is impossible for Western banks to continue operating in Russia without exposure to risks.
A while ago, a high-ranking US official confirmed that the sanctions imposed on Russia “paralyze” the Russian Central Bank and make Moscow a “pariah” and the ruble in a “free fall”.
He added in remarks reported by the media: “Russia has become a pariah state economically and financially at the international level,” stressing that the Russian Central Bank “will not be able to support the ruble.”
(Reuters, The New Arab)
2023-06-27 15:13:34
#Pressure #accelerate #departure #European #banks #Russia
