Currently, sanctions are being imposed on Russian banks as part of the Ukraine war. The European headquarters of the state-owned Russian Sberbank is located in Vienna, Austria. The European Central Bank ECB warned that Sberbank Europe is likely to fail because of economic difficulties. Therefore, the Austrian Financial Market Authority (FMA), as the national resolution authority, on behalf of the competent European bank resolution authority, the Single Resolution Board (SRB) based in Brussels, has imposed a moratorium on Sberbank Europe with immediate effect.
Sberbank Europe AG, registered in Vienna, Austria, is a wholly-owned subsidiary of Moscow-based Sberbank, which is majority-owned by the Russian state. The following restrictions apply for the period of the moratorium:
- All payment and delivery obligations of Sberbank Europe AG to its creditors are suspended;
- Creditors cannot enforce any security interests against Sberbank Europe AG;
- Termination rights of counterparties of Sberbank Europe AG are temporarily suspended;
- The enforcement of security interests of secured creditors of Sberbank Europe AG is prohibited;
- The termination rights of a party to a contract with Sberbank Europe AG are suspended;
Therefore, Sberbank Europe AG may not make any disbursements, transfers, or other transactions during the moratorium. However, depositors of eligible deposits have access to a maximum amount of € 100 per day to secure the most necessary daily needs until the end of the moratorium. Deposits up to €100,000 will continue to be covered by the Austrian deposit guarantee scheme.
The European Central Bank ECB has warned that Sberbank Europe AG is in serious economic difficulties and that the bank’s failure (“fail or likely to fail”) is imminent. Consequently, the SRB, after a thorough assessment, has determined that Sberbank Europe AG is indeed highly likely to fail and has imposed this temporary moratorium to consider the further steps required. The measure serves to safeguard and strengthen financial market stability in the banking union.
