Russian banks haven't been banned from lending to foreign bank subsidiaries in interests of financial stability - CBR

MOSCOW. March 5 (Interfax) - The Russian authorities have not closed off the opportunity for the subsidiaries of foreign banks to raise funding from Russian banks out of consideration for financial stability in the country, the Central Bank said.

The Central Bank on Saturday sent to market participants and published on its website a circular signed by Elvira Nabiullina, its governor, which "in connection with questions being received" explains the procedure for applying certain provisions of two presidential decrees dated February 28 and March 1 introducing currency and capital controls against the backdrop of unprecedentedly tough anti-Russian sanctions.

The Central Bank said that "taking into account the need to prevent situations arising that threaten Russia's financial stability, the provisions of Decree No. 79 and Decree No. 81 do not restrict Russian credit organizations from providing loans to Russian credit organizations that are controlled by entities in foreign states that commit unfriendly actions [against Russia]."

Not one subsidiary of a foreign bank in Russia has yet joined the mass exodus of foreign business from the Russian market.