Monday, October 3, 2022
HomeLaw & PoliticsSberbank of Russia exits the European market

Sberbank of Russia exits the European market

Sberbank, Russia's largest bank, to presumably cease operations in Europe.

Russia’s economy continues to struggle as a result of the Western world’s monetary sanctions. The loss of access to the global payment system SWIFT, among other financial restrictions, resulted in a dramatic drop in the value of the ruble. The regulations have also begun to have an impact on Russia’s largest bank- Sberbank. The firm stated that its companies across Europe are experiencing massive financial withdrawals, while the salaries of its staff are in jeopardy. The bank will no longer provide liquidity to its European subsidiaries. Sberbank, on the other hand, maintained that it has adequate capital and asset quality to pay all depositors. In the existing circumstances, Sberbank has chosen to withdraw from the European market.

Surprisingly, Sberbank is one of the Russian banks that has taken a pro-crypto attitude in recent months. In the end of 2021, the bank established a blockchain exchange-traded fund (ETF) that monitors the performance of important cryptocurrency businesses such as Coinbase and Galaxy Digital. This was the first product of its kind in Russia, allowing traders to explore the world of digital assets without having to buy, store, or sell tokens.

The fund is known as “Sber – Blockchain Economy,” and it trades under the ticker SBBE. It is based on the eponymous index produced by SberCIB, the bank’s investment unit. Sberbank General Director Evgeny Zaitsev stated that direct investments in bitcoin or other currencies are incredibly dangerous. As such, the product would allow users to invest in firms that guarantee the growth of blockchain technology rather than cryptocurrency.

 

Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.
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