European arm of Russias Sberbank to be wound down by year-end

div classBodysc17zpet90 cdBBJodivpBERLIN Reuters – The European arm of Sberbank, Russia‘s biggest lender, is to be wound down by the end of the year and creditors will be paid back, Austria’s national bank, the OeNB, and the Financial Market Authority FMA said on Wednesday.p

pSberbank Europe AG, based in Vienna, was closed by order of the European Central Bank in March, after the ECB warned that the bank faced failure due to a run on deposits after Russia invaded Ukraine.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe Austrian deposit insurance fund, which paid out 926 million euros 974 million in secured deposits, will receive back all funds from the lender, OeNB and FMA said.p

pSberbank, which serves more than 100 million individual customers in Russia, confirmed that all deposits would be paid in full and that it was continuing systematic work on exiting the European market.p

pThe European Commission on Wednesday proposed removing the lender from the international SWIFT transaction and messaging system, the latest sanctions to target the heart of Russia‘s financial system over Moscow’s actions in Ukraine.p

p1 0.9504 eurosp

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pp Reporting by Riham Alkousaa and Maria SheahanEditing by Elaine Hardcastlep

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