Leading Russian Banker Thinks Western Sanctions Are Here to Stay
According to Sber CEO Herman Gref, Western sanctions on Russia might persist and could potentially be intensified. Read the full article at RT.com.
TroibNews 
Moscow may face even stricter sanctions, according to Sber CEO Herman Gref.
On Thursday, Gref suggested that Western sanctions against Russia could not only remain in place but might also intensify, as reported by RBK. The West has implemented an unprecedented number of sanctions in response to the Ukraine conflict, targeting a wide range of industries, especially the financial sector, to destabilize Russia's economy. Furthermore, around $300 billion held by Russia's central bank is currently frozen in foreign accounts, mainly in the US and EU.
During an investor call, Gref highlighted Sber’s cautious strategy, remarking that “we proceed with the scenario that no sanctions will be lifted.” He further stated, “Moreover, we assume that sanctions will be tightened,” noting that any easing would be viewed as a “happy bonus.”
Despite this cautious outlook, Gref mentioned that Sber is also preparing for a scenario where Western sanctions are lifted. He acknowledged that lifting sanctions could lead to positive developments, such as alterations in oil price discounts, better stock market performance, increased foreign investment, lowered transaction costs, and simplified settlements.
In response to the sanctions related to the Ukraine conflict, Sber exited the EU banking market in mid-2023. Previously, the bank operated through Sberbank Europe AG, which had branches in eight EU countries and served around 715,000 customers. Since then, Sber has primarily concentrated on domestic operations while expanding into Asia.
Discussions about the potential lifting of sanctions and the return of Western companies to Russia have gained momentum following recent negotiations between Moscow and Washington in Saudi Arabia. These talks were initiated after a phone conversation between Russian President Vladimir Putin and US President Donald Trump on February 12.
US Secretary of State Marco Rubio later noted that Western nations may need to contemplate lifting sanctions to achieve an “enduring, sustainable” resolution to the Ukraine conflict. On Tuesday, Trump indicated that the US could consider lifting sanctions “at some point” during peace negotiations.
Rubio emphasized that the EU would need to be included in discussions about sanctions relief, given its own restrictive measures against Russia. However, Brussels has stated its intention to maintain an independent sanctions policy, regardless of the US position.
This week, the EU enacted its 16th sanctions package. On Thursday, Trump signed an executive order extending sanctions against Russia.
The Kremlin has consistently criticized the Western sanctions as illegal. Last week, Putin claimed that these restrictions have actually strengthened Russia’s economic and technological sectors, promoting closer collaboration among domestic firms and scientific institutions. He also pointed out that any potential return of Western companies to Russia would require careful regulation to safeguard domestic industries.
Debra A Smith contributed to this report for TROIB News
On Thursday, Gref suggested that Western sanctions against Russia could not only remain in place but might also intensify, as reported by RBK. The West has implemented an unprecedented number of sanctions in response to the Ukraine conflict, targeting a wide range of industries, especially the financial sector, to destabilize Russia's economy. Furthermore, around $300 billion held by Russia's central bank is currently frozen in foreign accounts, mainly in the US and EU.
During an investor call, Gref highlighted Sber’s cautious strategy, remarking that “we proceed with the scenario that no sanctions will be lifted.” He further stated, “Moreover, we assume that sanctions will be tightened,” noting that any easing would be viewed as a “happy bonus.”
Despite this cautious outlook, Gref mentioned that Sber is also preparing for a scenario where Western sanctions are lifted. He acknowledged that lifting sanctions could lead to positive developments, such as alterations in oil price discounts, better stock market performance, increased foreign investment, lowered transaction costs, and simplified settlements.
In response to the sanctions related to the Ukraine conflict, Sber exited the EU banking market in mid-2023. Previously, the bank operated through Sberbank Europe AG, which had branches in eight EU countries and served around 715,000 customers. Since then, Sber has primarily concentrated on domestic operations while expanding into Asia.
Discussions about the potential lifting of sanctions and the return of Western companies to Russia have gained momentum following recent negotiations between Moscow and Washington in Saudi Arabia. These talks were initiated after a phone conversation between Russian President Vladimir Putin and US President Donald Trump on February 12.
US Secretary of State Marco Rubio later noted that Western nations may need to contemplate lifting sanctions to achieve an “enduring, sustainable” resolution to the Ukraine conflict. On Tuesday, Trump indicated that the US could consider lifting sanctions “at some point” during peace negotiations.
Rubio emphasized that the EU would need to be included in discussions about sanctions relief, given its own restrictive measures against Russia. However, Brussels has stated its intention to maintain an independent sanctions policy, regardless of the US position.
This week, the EU enacted its 16th sanctions package. On Thursday, Trump signed an executive order extending sanctions against Russia.
The Kremlin has consistently criticized the Western sanctions as illegal. Last week, Putin claimed that these restrictions have actually strengthened Russia’s economic and technological sectors, promoting closer collaboration among domestic firms and scientific institutions. He also pointed out that any potential return of Western companies to Russia would require careful regulation to safeguard domestic industries.
Debra A Smith contributed to this report for TROIB News
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