MTS Bank puts blocked assets at 9.6 bln rubles, seeks license to move funds to Russia

MOSCOW. April 11 (Interfax) - MTS Bank has had 9.6 billion rubles in assets blocked as a result of sanctions and has applied for a license to transfer the funds to Russian jurisdiction, investment group Sistema PJSFC reported in its consolidated financial statements.

MTS Bank, which is owned by Russian telecom company MTS, which is in turn 42.085% owned by Sistema, was hit by U.S. and UK sanctions at the end of February 2023. The sanctions require third parties in these countries, including banks, to freeze or block MTS Bank assets or otherwise block payments to and from the bank.

MTS Bank is not conducting settlements in dollars, British pounds, Turkish lira, Omani rials or Swiss francs.

"In addition, at present MTS Bank cannot control some assets (balances on group nostro accounts in South Korea). The current value of the blocked assets as of the date of publication of this consolidated financial statement is 9.6 billion rubles," Sistema said.

The bank has filed an application for a license that will enable it to transfer the balances on these accounts to Russian jurisdiction and the chances of receiving such a license are believed to be high, Sistema said.