The ECB is putting pressure on European banks to leave Russia

The European Central Bank is putting pressure on eurozone banks to reduce operations in Russia.

It is reported Financial Times with reference to the words of the Chairman of the Supervisory Committee of the European Central Bank, Andrea Enria.

He noted that “many banks have taken steps” to reduce their exposure to Russia since the beginning of Russia’s full-scale invasion of Ukraine, but added that the ECB would welcome “any opportunity for banks to exit the market.”

Many of the 45 Western banks with subsidiaries in Russia have considered exiting the country, but only a few have actually done so. The two remaining banks with the largest assets are under ECB supervision: Austria’s Raiffeisen Bank International and Italy’s UniCredit.

“Of course, we put pressure on banks to actively manage risks [своїх російських активів]”, Enria said. “Any opportunity for banks to get out of this business would be attractive to us from a supervisory perspective.”

Last year, the Russian Federation forbade foreign companies from “unfriendly” countries (those that imposed sanctions against Russia because of its war against Ukraine) from entering into agreements without the approval of the President of the Russian Federation, Vladimir Putin. This makes it difficult for banks to exit the Russian market. “Window for sale [активів] is closing little by little,” added Enria.

According to Enria, several eurozone banks have reduced their cross-border operations with Russia, created reserves to cover potential losses from them or separated their Russian operations from the rest of the group.