Czech Republic, Poland and Slovakia exit two Russian-controlled post-Soviet banks

The Czech Republic, Poland and Slovakia have completed the exit from two international banks with a controlling stake owned by Russia, said Reuters with reference to the Ministry of Finance of the Czech Republic. As the agency notes, the dependence of these banks on Russia “is rooted in the Soviet era.”

The Czechs began pulling out of the Budapest-based International Investment Bank (IIB) and the Moscow-based International Bank for Economic Cooperation in early 2021 and have vowed to speed up the process once Russian troops enter Ukraine. Prague feared that Moscow would use credit institutions to circumvent sanctions.

Poland and Slovakia have also completed their bank exits, with Romania exiting in June. Bulgaria is expected to follow suit and do so this year, the Czech Finance Ministry said in a statement.

“Last week, after 33 years, the Czech Republic left two post-Soviet banks, the International Bank for Economic Cooperation and the International Investment Bank,” Czech Finance Minister Zbynek Staniura said at a press conference.

He said that the government has still not been able to agree on the terms for the return of its share of the banks’ capital, totaling €64 million.

“A settlement agreement was not reached in the two post-Soviet banks, in the case of IIB, mainly due to the extremely unfavorable position of the bank’s management and other members, led by Russia,” Mr. Stanyura explained.

He added that the Czech Republic would consider legal steps, including arbitration, in the absence of a “realistic” agreement with the banks.

Daria Erozbek