ECB urges banks to expedite withdrawal from Russia after Prigozhin’s rebellion
[ad_1]
The European Central Bank (ECB) called on financial institutions to intensify their withdrawal from the Russian market due to increased risks after the rebellion of the head of PMC Wagner Yevgeny Prigozhin.
Reuters, citing ECB Supervisory Board Chairman Andrea Enria, said that in a letter sent to MEPs on Tuesday 27 June, Enria noted that his division “urged banks to accelerate their plans to reduce and exit Russia by developing clear strategies and keep its governing bodies and the ECB’s banking supervisors regularly informed of the progress of these plans.”
Enria also pointed to increased reputational, legal and financial risks associated with continuing to operate in Russia.
Among the largest European banks that continue to operate in Russia, at the moment are the Austrian Raiffeisen Bank International (RBI), the Hungarian OTP Group and the Italian UniCredit, Reuters notes. RBI CEO Johann Strobl said the bank is actively developing scenarios for its exit from Russia. Earlier it was already reported about the intention of the Austrian bank to close its branches in Russia.
[ad_2]
Source link
