Sberbank, Russia’s largest financial institution, will exit the European market due to economic sanctions imposed on the country. The company claims that its European subsidiaries are experiencing a massive outflow of cash, putting the safety of its employees in jeopardy.
Sberbank, interestingly, is one of the Russian institutions that has taken a pro-cryptocurrency posture in recent months.
The introduction of financial sanctions by the West appears to have had a significant impact on Russia’s economy. The ruble’s value plummeted after it was cut off from the worldwide SWIFT payment system and additional sanctions were imposed. These funds began to have an impact on significant institutions like Sberbank.
According to a recent Reuters article, the institution would no longer lend liquidity to its European branches. On the other hand, Sberbank stated that it had sufficient capital to pay all depositors. According to the Bank:
Sberbank has opted to exit the European market under the current situation. The firm’s subsidiaries were experiencing an unusual outflow of cash, posing a threat to the safety of their employees and branches.
The financial institution expanded its operations to Austria, Germany, Croatia, Hungary, and other European countries. ‘ It also owns $14 billion worth of European assets. As a non-EU country, Switzerland has no plans to impede Sberbank’s operations on its territory.
Sberbank Crypto Projects
The bank launched a blockchain exchange-traded fund (ETF) in December 2021 that tracks key cryptocurrency companies like Coinbase and Galaxy Digital. It was the first product in Russia that allowed investors to explore the world of digital assets without having to purchase, store, or sell tokens.