Sberbank of Russia establishes outposts in territories under Ukrainian occupation
Major Russian bank, Sberbank, plans to establish over 40 branches across territories under Russian control in Southern Ukraine within the next week. As per Sberbank's CEO, German Gref, these branches will be set up in regions like Luhansk, Donetsk, Zaporizhzhia, and Kherson, with some being situated in partnerships or local town halls. These branches cater to both business and individual clients, and there will also be 16 mobile branches on the go. The number of Sberbank ATMs in Donetsk and Luhansk is set to increase to 65.
The arrival of Russian banks is reportedly part of the occupying authority's policy, designed to link these Ukrainian territories to Moscow.
Since the annexation of Crimea in 2014, Russia has annexed Donetsk, Luhansk, Zaporizhzhia, and Kherson as their territory in September 2022, although parts of these territories are still under the defense of the Ukrainian army. President Vladimir Putin had implored banks to be active in these new territories back in January. In early June, state-owned bank VTB also announced branches in Donetsk and Luhansk.
Initially, Sberbank held back from functioning in Crimea post-annexation due to concerns over Western sanctions. However, since the initiation of the Russian military offensive in 2022, Western penalties were levied on the largely state-owned Sberbank due to its significant role in the Russian financial system. Despite these sanctions, Gref reported a record profit of 1.5 trillion rubles (approx. 15 billion Euros) according to international accounting standards at the 2023 annual meeting, half of which will be distributed as dividends.
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Sberbank's expansion into these areas suggests a strengthening of Russian economic influence in the Ukraine war-affected regions. The establishment of Sberbank branches in Luhansk, Donetsk, Zaporizhzhia, and Kherson also indicates President Putin's push for financial integration of these territories with Russia.
