foreign banks may be allowed to sell business in the Russian Federation to Russians who fell under sanctions

Western banks can sell business in the Russian Federation
©Stefan Kiefer/ Look Press

The corresponding initiative is being discussed with national regulators. In addition, an option is being considered that involves the exchange of assets. That is, Western banks may be allowed to negotiate with Russian buyers who have their own business in the West. The newspaper writes about it Financial Times (FT) on Sunday, May 15th.

A representative of one of the banks commented on the current situation and noted that the only option is “to talk to those people who impose sanctions,” reports TASS. “Basically we were told that we could sell the assets to a sanctioned person or organization if they meet certain criteria. Most likely we will not do this, but we discussed this option,” he said.

As for the exchange of assets, this possibility is also being discussed. In particular, the American and Italian banks Citigroup and UniCredit are working on issues related to the possibility of making deals with Russian financial institutions. We are talking about those that did not fall under the sanctions of the European Union (EU) and the United States.

In the newspaper’s material, moreover, it is specified that UniCredit refused the offer to buy its business in the Russian Federation by the Interros group. However, there are no official comments from the parties on this matter.

Earlier, the FT reported that European and US banks evaluate possible losses in the event of a reduction in activities in the Russian Federation or a complete withdrawal from the Russian market in the amount of more than $10 billion. Such an amount is generally reserved by Western financial institutions in case of possible losses.

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