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First Bank Failure from Russia Sanctions: Sanctions Update, March 2, 2022

The Austrian operations of Sberbank will go into insolvency, the EU’s Single Resolution Board announced Tuesday night, March 1. And the Croatian and Slovenian units of Russia's biggest lender are being transferred to new owners. The Board announced that "Eligible deposits up to €100,000 are protected by the Austrian deposit guarantee system." (First bank to fail because of new Russia sanctions is Austrian unit of Sberbank - Financial Times)

Meanwhile, according to JP Morgan analysts, international sanctions have significantly increased the chance of Russia international debt default. “The sanctioning of Russian government entities by the United States, counter-measures within Russia to restrict foreign payments, and disruptions of payment chains present high hurdles for Russia to make a bond payment abroad,” JPMorgan said in a note to clients.


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