Bank of Russia to support sanctioned banks
The Bank of Russia and the Government of the Russian Federation will provide any support required by the Russian banks that came under sanctions from Western countries. These banks include VTB Bank (PJSC), PJSC Sovcombank, Joint Stock Commercial Bank Novikombank, and Bank Otkritie Financial Corporation (PJSC) facing the US blocking sanctions; Promsvyazbank PJSC and Bank Rossiya targeted in the European and US sanctions announced earlier this week; and Sberbank with its correspondent accounts subject to sanctions.
All banks planned in advance for measures to ensure uninterrupted operation in the conditions of sanctions. According to the regulator, these measures are commensurate with the situation.
Banks will perform all ruble operations and provide relevant services to all customers as normal. All customer funds in foreign currency will be preserved and may be withdrawn in the currency of account. The Bank of Russia is prepared to provide banks with financial support in rubles and foreign currency.
Banks remain highly resilient and have great potential to develop lending to the Russian economy. The balance sheet of each bank is predominantly (over 80%) denominated in rubles. Foreign currency loans have been granted mainly to solvent Russian companies that will continue to service them.
The Bank of Russia is prepared to take extra measures to ensure stability and business continuity of banks and protect interests of their creditors and depositors.
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