Largest creditors leave Russia

The Russian banking sector loses the largest creditors one by one. Western sanctions clearly define measures of the financial response that forces the largest investors to refuse to work with the Russian banks. As it turned out, the French company BNP Paribas announced its management’s decision to cease the issuance of letters of credit for funding commodity transactions involving financial institutions having come under the sanctions. “BNP Paribas stopped offering letters of credit for commodity transactions involving five Russian state banks from sanction list, although the current sanctions do not forbid them," the anonymous sources in the company said. The experts note that these banks "are the major players on financing commodity transactions." The number of banks and companies is growing steadily. New Russian companies from finance, fuel and energy, and defense sectors were added to the SSI List Sorted by OFAC Sanctions Program of section Sectoral Sanctions Identifications (SSI) List. According to the presented data, Sberbank, Gazprom, Rosneft, Lukoil, Transneft, Gazprom Neft, Surgutneftegas, Rostec Corporation as well as a number of companies of the defense sector in Russia were added to the list for the first time. It should be noted that for all the Russian banks from sanction list - Bank of Moscow, Vnesheconombank, VTB, Gazprombank, Rosselkhozbank, and Sberbank - the maturity, permitted to be purchased by American citizens and companies, is reduced from 90 days to 30 days. Those who are disagreeing with such a policy of the EU will be suspended from work. For example, Baudouin Prot, the Chairman of BNP Paribas' Board of Directors, was forced to resign. His resignation will happen three months after the bank pays a fine in the amount of nearly USD 9 billion for the sanctions violation against some of the countries, including Sudan, Iraq and Cuba.