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Sberbank Europe Unravels After Russia Sanctions Cause Bank Run

  • Croatian and Slovenian subsidiaries to transfer to other firms
  • Depositors of Austrian division to be compensated by fund
Updated on

Europe is carving up Sberbank of Russia PJSC’s business in the region after sanctions sparked by President Vladimir Putin’s invasion of Ukraine prompted a run on its local deposits.

Austria-based Sberbank Europe AG will be liquidated under local insolvency procedures while all shares in its Croatian and Slovenian subsidiaries will be transferred to other firms in those countries, according to the Single Resolution Board, which handles failing European lenders. Shares in the parent company listed in London were down 90% on Wednesday, with Russian stock trading remaining closed.