Leading Russian Banker Asserts Western Sanctions Are Here to Stay
According to Sber CEO Herman Gref, Western sanctions on Russia are likely to persist and could potentially be intensified. Read Full Article at RT.com
TroibNews 
Moscow might face even stricter restrictions, according to Sber CEO Herman Gref.
On Thursday, Gref, who leads Russia's largest bank, Sber, indicated that Western sanctions against Russia may remain in place and could potentially be tightened further, as reported by RBK.
The West has enacted an unprecedented array of sanctions against Russia in response to the conflict in Ukraine, targeting various industries, particularly the financial sector, with the aim of undermining the country’s economy. Additionally, about $300 billion of Russia’s central bank assets are frozen in foreign accounts, mainly in the US and EU.
In an investor call, Gref remarked on Sber’s cautious strategy, stating, “we proceed with the scenario that no sanctions will be lifted.” He further noted, “Moreover, we assume that sanctions will be tightened,” emphasizing that any easing would be seen as a “happy bonus.”
Despite this outlook, Gref mentioned that Sber is also considering a scenario in which Western sanctions could be lifted. He recognized that the abolition of sanctions would likely have beneficial impacts, such as adjustments in oil price discounts, improved stock market conditions, greater foreign capital influx, lower transaction costs, and streamlined settlements.
In light of the Western sanctions stemming from the Ukraine situation, Sber exited the EU banking market in mid-2023. Previously, the bank operated through Sberbank Europe AG, which had branches in eight EU nations and served around 715,000 customers. Since that time, Sber has concentrated more on its domestic operations while expanding into the Asian market.
Discussions pertaining to the lifting of sanctions and the potential re-entry of Western companies into Russia have increased following recent dialogues between Moscow and Washington in Saudi Arabia, initiated by a phone call between Russian President Vladimir Putin and US President Donald Trump on February 12.
US Secretary of State Marco Rubio later proposed that Western nations might need to contemplate sanction relief to secure an “enduring, sustainable” solution to the conflict in Ukraine. Trump stated on Tuesday that the US could lift sanctions “at some point” during peace talks.
Rubio also mentioned that the EU would need to be involved in discussions about sanctions relief, as it has its own set of restrictive measures against Russia. However, Brussels has indicated that it plans to uphold an independent sanctions policy irrespective of the US stance.
This week, the EU put forth its 16th sanctions package, and on Thursday, Trump signed an executive order extending sanctions against Russia.
The Kremlin has consistently denounced the Western sanctions as illegal. Last week, Putin asserted that these sanctions have, in effect, bolstered Russia’s economic and technological sectors and enhanced cooperation among domestic businesses and scientific institutions. He also stressed that any potential resurgence of Western companies in Russia would have to be carefully managed to safeguard local industries.
Mark B Thomas for TROIB News
On Thursday, Gref, who leads Russia's largest bank, Sber, indicated that Western sanctions against Russia may remain in place and could potentially be tightened further, as reported by RBK.
The West has enacted an unprecedented array of sanctions against Russia in response to the conflict in Ukraine, targeting various industries, particularly the financial sector, with the aim of undermining the country’s economy. Additionally, about $300 billion of Russia’s central bank assets are frozen in foreign accounts, mainly in the US and EU.
In an investor call, Gref remarked on Sber’s cautious strategy, stating, “we proceed with the scenario that no sanctions will be lifted.” He further noted, “Moreover, we assume that sanctions will be tightened,” emphasizing that any easing would be seen as a “happy bonus.”
Despite this outlook, Gref mentioned that Sber is also considering a scenario in which Western sanctions could be lifted. He recognized that the abolition of sanctions would likely have beneficial impacts, such as adjustments in oil price discounts, improved stock market conditions, greater foreign capital influx, lower transaction costs, and streamlined settlements.
In light of the Western sanctions stemming from the Ukraine situation, Sber exited the EU banking market in mid-2023. Previously, the bank operated through Sberbank Europe AG, which had branches in eight EU nations and served around 715,000 customers. Since that time, Sber has concentrated more on its domestic operations while expanding into the Asian market.
Discussions pertaining to the lifting of sanctions and the potential re-entry of Western companies into Russia have increased following recent dialogues between Moscow and Washington in Saudi Arabia, initiated by a phone call between Russian President Vladimir Putin and US President Donald Trump on February 12.
US Secretary of State Marco Rubio later proposed that Western nations might need to contemplate sanction relief to secure an “enduring, sustainable” solution to the conflict in Ukraine. Trump stated on Tuesday that the US could lift sanctions “at some point” during peace talks.
Rubio also mentioned that the EU would need to be involved in discussions about sanctions relief, as it has its own set of restrictive measures against Russia. However, Brussels has indicated that it plans to uphold an independent sanctions policy irrespective of the US stance.
This week, the EU put forth its 16th sanctions package, and on Thursday, Trump signed an executive order extending sanctions against Russia.
The Kremlin has consistently denounced the Western sanctions as illegal. Last week, Putin asserted that these sanctions have, in effect, bolstered Russia’s economic and technological sectors and enhanced cooperation among domestic businesses and scientific institutions. He also stressed that any potential resurgence of Western companies in Russia would have to be carefully managed to safeguard local industries.
Mark B Thomas for TROIB News
