Paris, Europe Brief News – The Italian Bank’s CEO said that UniCredit is planning on its costly exit from Russia after its Unprovoked and unjustified invasion of Ukraine.
On the other hand, Credit Suisse revealed that 4% of its wealth management assets are managed specifically for Russian Clients.
A massive number of financial firms have decided to exit Russia as Goldman Sachs, JP Morgan Chase and Deutsche Bank have announced that they are completely shutting down their businesses in Russia.
Andrea Orcel, UniCredit Chief Executive said “ The bank was urgently reviewing its Russian Business but needed to find a solution for its 4,000 local staff and European companies it serves which are also trying to leave”.
Orcel also mentioned that the Russian invasion of Ukraine has impacted and totally changed the economic environment and the bank was assuming there would be stagflation in coming years.
The World’s largest Inter-dealer broker has announced on Tuesday that it is ready to terminate all business transactions with Russian Banks.
Credit Suisse detailed a gross credit exposure of $1.69 billion to Russia at the end of 2021. Thomas Gottstein, Chief executive of Credit Suisse said that the total amount had been reduced materially by the end of February.
Gottstein said at the Morgan Stanley Conference in London “ The bank had roughly 4% of our assets under management in wealth management with Russian clients and it could be either Russian-domiciled or Russian nationals who live in the West”.
Introduction of Countermeasures to tackle sanctions
Russia is in the line of facing strict sanctions from the US and Western allies but now Russia is more focused on introducing countermeasures to cope with sanctions and keep the economic and financial situation intact.
As the pressure is mounting on Russia with dozens of international sanctions, the Russian central bank has decided to suspend the buying of gold from banks. This move was taken to meet the growing demand for Gold from Households.
On the other side, Russia’s second-biggest bank VTB announced that it is closing London-based investment banking unit VTB capital.
The European Commission said, “ The European Union has banned top credit rating firms from rating Russia’s sovereign debt and the country’s companies as a part of its latest sanctions package”.
Britain has also imposed several sanctions on Russian oligarchs by seizing their assets and even banned the exports of luxury goods to Russia.
