Julius Baer curtailing activities in Russia

MOSCOW. March 21 (Interfax) - Swiss private banking corporation Julius Baer Group Ltd. is curtailing its activities in Russia, the wealth management group said in a statement.

"Julius Baer complies with all applicable laws and regulations, including national and international sanctions," and, since the operation in Ukraine began, "does not on-board new clients with a Russian residence," the statement said.

Advisory subsidiary Julius Baer CIS Ltd. in Moscow had a net asset value of 400,000 Swiss francs, or $429,231, as of December 31, 2021.

"The Group is reducing its local activities in line with contractual agreements, while ensuring the safety of its small number of employees," the statement said.

"The Group is further monitoring settlement risks related to certain open transactions with Russian financial institutions related to Russian securities, such as market closures, the imposition of exchange controls, sanctions, or other measures which may potentially delay or impair the counterparties' ability to honor such claims," it said.

"The collateral value of Russian assets, including those traded on markets outside Russia, was reduced to zero in February 2022. Julius Baer has worked closely with the affected clients to adjust the credit positions accordingly, without this leading to any credit losses to date," the statement said.

Julius Baer has credit exposure to only a small number of clients recently subjected to sanctions in the form of, among other things, mortgage loans for residential properties located in Western Europe, it said.

Julius Baer Group specializes in servicing affluent private clients and is a leader in the sphere of wealth management. Julius Baer was founded in Zurich more than 120 years ago and operates in over 20 countries, including Russia, where it has an office in Moscow. Its shares are listed on the SIX Swiss Exchange and are included in the Swiss Market Index.