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Singapore Banks Halt Russia Commodities Lending to Cut Risks

  • DBS, OCBC, UOB stop issuing letters of credit for energy deals
  • Lenders seek to reduce exposure to Russia as sanctions mount
Aluminium Production at United Co. Rusal Plants
Photographer: Andrey Rudakov/Bloomberg
Updated on

Singapore’s biggest banks are restricting trade financing for Russian raw materials, as the war in Ukraine spurs lenders in Asia’s largest energy and commodities trading hub to reduce exposure to the sanction-hit country.

The limits include a halt on issuing so-called letters of credit in U.S. dollars for trades involving Russian commodities, including oil and liquefied natural gas, according to people familiar with the situation.