Sberbank threatened with bankruptcy
The European Central Bank (ECB) says that Sberbank Europe and its subsidiaries, may collapse.
The liquidity situation of this bank has deteriorated significantly as a result of the sharp outflow of deposits. According to the ECB, there is currently no realistic chance of restoring the position of this bank and its subsidiaries within the banking union.
Sberbank Europe is part of Sberbank, one of Russia’s largest banks. It operates in Germany, Austria, the Czech Republic, Hungary and Serbia, among others. After Russia’s attack on Ukraine, it was subject to sanctions by the US. They restricted its ability to settle transactions in dollars. Then, additionally, the European Union cut it off, as well as other Russian banks, from the international clearing system SWIFT.