The European subsidiary of the Russian Sberbank, which is affected by sanctions, has to stop operations.
The Vienna-based bank had to end all transactions with immediate effect, the Austrian Financial Market Authority (FMA) announced on Wednesday night.
The move came at the direction of the European Central Bank (ECB), which on Sunday determined that Sberbank Europe AG may be facing insolvency due to the Russian invasion of Ukraine and massive outflows of funds.
A reorganization or liquidation of the bank according to the European Bank Reorganization and Resolution Directive is not in the public interest, it said.
Because of the expected economic difficulties, the FMA had previously prohibited transfers, transactions and larger payments.
The majority state bank Sberbank and its European subsidiary have been sanctioned by the United States.
However, according to diplomats, the exclusion of several Russian banks from the Swift international payment system will not directly affect Sberbank.