With sanctions, Russian Sberbank faces ‘failure’ in Europe

BELGRADE, Serbia — Faced with a rush of people withdrawing money, Sberbank and the Russian bank’s subsidiaries in southeastern and central Europe are facing closures or takeovers following international sanctions imposed on Moscow for its invasion of Ukraine. The European Central Bank said Monday that Vienna-based Sberbank Europe AG and its branches in Slovenia and Croatia are failing or likely to fail after they “experienced significant deposit outflows” because of the impact to their reputation from the conflict. The bank said the move was a result of “the bank’s liquidity situation in the context of a significant outflow of deposits after the escalation of the conflict between Russia and Ukraine and Russia’s attack on Ukraine.” The Czech branches of Sberbank Europe were closed Monday, with the bank citing a significant withdrawal of the deposits by clients in a short period of time. Hungary’s central bank has ordered two bank holidays at Hungarian branches of the Russian Sberbank, according to a Monday announcement by the Hungarian National Bank, or MNB. In Serbia, which has not joined Western sanctions against its ally Russia, the central bank said it is monitoring Sberbank’s liquidity and promised to step in case of problems.