EU Introduces SWIFT Ban Against Three Large Russian Banks

Their subsidiaries in other countries also fell under the sanctions.

The European Union imposed sanctions against Russian Alfa-Bank, Tinkoff Bank and Rosbank. The restrictions include disconnection from the international SWIFT system, freezing of their assets in EU countries and a ban on transactions.

The decision was explained by the fact that these banks are systemically important and participate in sectors of the economy that provide "significant income" to Russia. There are separate mentions of Tinkoff. The bank participates in programs to promote entrepreneurship and supports its clients "in the light of military mobilization" together with the government.

As for Alfa-Bank, its subsidiaries in Cyprus (Alfa Capital Markets LTD), in the Netherlands (Amsterdam Trade Bank NV), in Luxembourg (ABH Holdings) and in Kazakhstan (Subsidiary Bank AlfaBank JSC) also fell under the sanctions.

Alfa-Bank and Rosbank have been under US ban sanctions since last year. Tinkoff has never been blacklisted before. There is time to complete operations with them by August 26, 2023, according to the EU newsletter.

All credit institutions said that the restrictions will not affect customer service. Tinkoff Bank assured that they had prepared for such a scenario. “We convey words of support to our international investors, who constitute more than 60% of Tinkoff’s investors. We are already analyzing the text of the decision of the European Commission and will return to you later with the details,” they noted. Tinkoff Investments will transfer clients' assets to another company.

Alfa-Bank reported that EU sanctions would not affect the usual work. “Transfers in euros at Alfa-Bank were turned off last spring. You can pay with Visa, Mastercard and Mir cards in Russia without restrictions, transfers within the country are instant, the application and Alfa-Online work quickly and reliably,” the bank specified.

Rosbank made a similar statement. “The bank continues to operate as usual, to carry out all transactions in rubles both remotely and in a wide network of offices. All terms of service and tariffs for products are preserved," they noted.

Also, the National Wealth Fund (NWF) fell under the sanctions. The justification reads that the Russian authorities were going to use the funds of the NWF to cover the budget deficit in 2023-2024, so the EU considers the fund responsible for the financial support of the state.

The restrictions also affected the Russian National Reinsurance Company, a subsidiary of the Central Bank, created to reinsure domestic businesses, which, due to sanctions, are experiencing difficulties in placing risks on international markets.