Russian bank VTB can no longer exercise any control over its European subsidiary in the wake of new sanctions, German regulator BaFin said on Sunday.
Highlights
- The European Union on Friday formally adopted new sanctions against Russia, which will ban a range of imports and also ban all transactions with four Russian banks, including VTB.
- Management at VTB’s Frankfurt-based subsidiary is no longer allowed to take instructions from the parent bank.
- The measures “result in a complete ring-fencing” of VTB Bank (Europe) SE from parent company, German regulator BaFin said.
- VTB did not immediately respond to a request for comment from its European subsidiary, which was one of the Russian banks excluded from the SWIFT messaging system, in what was a big blow to its ability to transfer money.