Russian bank Sberbank closes office in Abu Dhabi over sanctions

A queue in front of one of the Sberbank banks in Moscow, March 12, 2022 (Illustrative image).

© AP

Text by: RFI Follow

1 min

Russia's largest bank, Sberbank, will close its subsidiary in the United Arab Emirates.

In question, the Western sanctions imposed against it in July, as indicated by one of the leaders of the establishment, excluded from the international network Swift.

Publicity

Read more

The first Russian bank, Sberbank, under sanctions since the summer of 2022, will close its subsidiary, opened just two years ago in Abu Dhabi.

Without giving more details, its vice-president, Alexander Vedyakhin, spoke of " 

 " due to the sanctions, in a country that has become a refuge for many wealthy Russian citizens.

As is the case with Abu Dhabi, the fear of being excluded from the American market deters companies from working with sanctioned entities, even in countries that have not adopted them.

The Emirates placed on the Gafi gray list

The reputation of the United Arab Emirates as a "

" and destination of choice for money laundering is well established.

The place is also popular with states wishing to circumvent Western sanctions.

Russia is no exception, with a massive exodus of capital since the start of the war.

An exodus which earned the Emirates to be placed in March on the gray list of Gafi (Financial Action Task Force), the international body for the fight against money laundering.

This is enough to tarnish the reputation of the international financial center that the country wants to give itself, including in the eyes of Westerners. 

Faced with this closure in the Emirates, the leader of the first Russian bank remains hopeful of being able to withdraw into the

.

Alexander Vedyakhin said that active negotiations are underway with authorities in Beijing to open a branch there by the end of 2023.

► Also to listen: Carrefour d'Europe - How do the sanctions affect Russia?

Newsletter

Receive all the international news directly in your mailbox

I subscribe

Follow all the international news by downloading the RFI application

• Economy

• Russia

• United Arab Emirates