Bank / Credit Union

European Central Bank warns banks to leave Russia

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June 14, 2023

The European Central Bank is urging Euro zone banks to leave Russia. This is a rare direct call on banks to leave the nation, after more than a year into Russia's invasion of Ukraine, according to a Reuters report.

"I think that it is important that banks remain very focused on reducing further their exposures and, ideally, exiting the market as soon as they can," Andrea Enria, chief supervisor, ECB, said during a conference.

Currently, there are multiple European banks still operating in Russia including Austria's Raiffeisan Bank International and Italy's UniCredit. Both banks claim to be shrinking their business in Russia, while Raiffeisen is looking at a spin-off or sale.

Enria argues banks should make further efforts to reduce their actions in the country.

"This is a process that we not only praise, but we strongly pressure banks to perform because there is a huge reputational risk (involved) in continuing to operate in Russia," Enria said.