4 Apr 2022 09:19

Sberbank closing London division, in contact with UK regulator

MOSCOW. April 4 (Interfax) - Sberbank has decided to close its London division Sberbank CIB (UK) Ltd, but will meet all obligations to clients, the Russian lender's press service told Interfax.

"Sberbank is ending the operations of the London office, Sberbank CIB (UK) Limited. We are in contact with the local regulator, the Financial Conduct Authority, and will conclude are activities in compliance with the requirements of the law, fulfilling all obligations to clients," the bank said.

The decision to close the office was made following a reassessment of the economic potential of the Global Markets business's presence in the UK, the bank said.

The key employees of Sberbank CIB (UK) will continue to carry out their duties until the division is closed.

Sberbank CIB (UK) is seeking to be put under special administration, Bloomberg reported earlier, citing statements a company lawyer made in a London court. Sberbank CIB (UK) is having problems because of sanctions, although restrictions do not apply to it directly, the agency said.

The United States imposed correspondent and payable-through account sanctions against Sberbank in February 2022; they are not blocking sanctions. The UK later imposed similar sanctions against the Russian bank.

After the imposition of the U.S. sanctions, Sberbank's European division began to have problems with liquidity. As a result, European regulators decided to declare the division, Sberbank Europe AG (Austria), bankrupt and transfer some of its banks in various European Union countries to major local lenders.

At the beginning of March, Switzerland's Financial Market Supervisory Authority (FINMA) ordered protective measures at Sberbank (Switzerland) AG.