The exclusion of Russian banks in international transactions resulted in millions of losses in the Russian government.
The European Union decided to exclude seven Russian banks of the Society for Worldwide Interbank and Financial Communications system (FAST).
Among the banks excluded from the system was one of the country’s largest lenders, Sberbank PJSC.
READ: US bans all transactions with the Central Bank of Russia, unprecedented sanctions
Sberbank has been sanctioned by the UK. Sberbank has most of its capital listed on the London Stock Exchange, this Tuesday its shares plunged, losing 80% of its value.
The European Central Bank said on Monday that Sberbank’s European subsidiary was “bankrupt or may go bankrupt” due to a “significant” deposit withdrawal.
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The affected banks include one partially owned by energy giant Gazprom PJSC; PJSC Bank VTB; Rossiya Bank; Otkritie Bank; Novikombank; Promsvayazabank PJSC; and lSovocombank PJSC; and VEB.RF.
Countries like Poland have been pushing for more banks to be added to the exemption list, something that is still possible until it’s officially enforced.
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