Plastic cards issued by sanctioned Sovcombank will remain operable in Russia but FX transactions will become unavailable to clients

MOSCOW. Feb 25 (Interfax) - Russia's Sovcombank has commented on it being placed on the U.S. sanction list, saying that its cards will remain active in Russia only, and any foreign exchange transactions will be unavailable to its clients.

"All the cards of our bank continue to be operable in Russia without limitations, transactions can be made through them," Sovcombank said in a statement.

"Using cards issued by the bank, including within Visa and Mastercard payment systems, abroad and payments with Sovcombank cards on foreign websites are inaccessible for the moment due to the sanctions introduced. One can transfer money to another bank's card, in relation to which there are no restrictions in place," the lender said.

"Foreign exchange will be unavailable in the banks' offices and mobile apps," it said.

Remittances in foreign exchange abroad will also be inaccessible in the Halva Sovcombank mobile app and the bank's offices. Transfers within Sovkombank and across Russia are fully available in rubles and in foreign currency, it said.

The restrictive measures imposed on the lender will not affect any of its clients' accounts or deposits. The bank will fulfil all its obligations with regard to accruing and paying interest and money withdrawals from its clients' accounts, it said.

Sovcombank has said that it "has a sufficient reserve of capital and liquidity to overcome any negative impact of sanction restrictions."

In order to minimize risks in the current situation, the bank's corporate clients are advised to temporarily refrain from making any transactions or payments in U.S. dollars or euros. "When proceeding with settlements in other currencies, we ask you to rule out the involvement of any financial establishments and persons based in the jurisdiction of the U.S., the European Union, the United Kingdom and any of those regarded on any other grounds as operating in the U.S./EU/United Kingdom, and their affiliated entities," the lender said.

Sovcombank was earlier included in a list of blocking sanctions by the U.S., alongside several other major Russian banks. These sanctions are banning the lender from any payments denominated in U.S. dollars, according to the U.S. Department of the Treasury.

Sovco Capital Partners is the lender's key shareholder with a holding of 86.5%. The bank's end beneficiaries include its top managers, financial investors, and several sovereign funds (Saudi Arabia, Qatar, Bahrein, Kuwait, Japan, Russia, China and UAE).