Russian banks have increased the number of branches at the expense of Donbass and controlled territories of Ukraine

Russian banks have increased their office network by 19 branches for the first time in three years. In particular, the result was achieved by opening branches of Promsvyazbank (PSB) in the Donetsk and Luhansk People’s Republics, as well as in the regions of Ukraine occupied by Russian troops, Maxim Osadchiy, head of the analytical department of the BKF bank, said, referring to data from the Central Bank.

“The office network of all credit institutions in Russia, excluding Sberbank, increased by 19 additional offices in June. This is the first increase in three years. Previously, growth was recorded in July 2019,” Mr. Osadchy told RIA Novosti.

The expert noted that about 50 service points were opened in the territories of the DPR, LPR, Kherson and Melitopol. The expansion of the office network is explained, among other things, by the creation of branches in these territories.

Last month, Mr. Osadchiy notes, the office network of banks was reduced by 31 branches against the backdrop of the closure of 50 additional offices by Sberbank. Over the past seven months of 2022, the credit institution closed 289 additional offices. At the same time, according to data for August 1, Sberbank owned 12,989 branches – 51.7% of the entire office banking network. Maxim Osadchiy notes that the reduction of bank branches in Russia is taking place against the backdrop of the need to reduce operating costs.

In early June, the Russian Promsvyazbank opened branches in the territories of the DNR and LNR. This is the first bank in Russia, which began to operate on the territory of the republics. Representatives of the bank noted that the credit institution is determined to assist the development of the regional economy. At the end of June, Yevgeny Balitsky, who calls himself the head of the military-civilian administration of the Zaporozhye region, spoke about the opening of the first branch of Promsvyazbank in Melitopol. In the same period, the pro-Russian authorities announced the opening of a branch of the PSB in Kherson.

Lusine Balasyan