Clients Pressure Top Custodian Banks to Stay in Russia: Sanctions Update
3/24/2022
The International Business Times reports that Citigroup Inc, JPMorgan Chase & Co, Societe Generale and other international banks are being pressured to remain as custodian banks in Russia, as rivals and funds worry they may lose services critical to future investment in the country.
According to IBT, "Citigroup and SocGen, the French parent of Rosbank, have already announced plans to dramatically pare operations in Moscow as part of a sweeping program of Western sanctions aimed at isolating Russia economically following its invasion of Ukraine.
Both banks have said they will aid their clients with the complex tasks of unwinding or reducing exposures to Russia, and said withdrawals will take time to execute.
But neither has made a public statement on the long-term status of their custodian services, leaving some clients nervous for the future."
Related sanctions news:
- Cypriot Lender RCB to Shut Retail Business in Wake of Ukraine War (Financial Times)
- Russia Central Banker Wanted Out Over Ukraine, Putin Said No (Bloomberg)
- Stock Traders Brace for a Chaotic Reopening to Russia’s Market (Bloomberg)