The recent U.S. sanctions on Moscow have significantly affected Russian banks, including VTB, Russia’s second-largest lender. Dmitry Pyanov, VTB’s finance director, acknowledged the challenges posed by these sanctions but expressed confidence that the bank would manage to adapt. Specifically, VTB’s branch in Shanghai, which is the only representative office of a Russian bank in China, has been impacted by the sanctions and is currently adjusting to the new circumstances.
The sanctions, imposed on June 12, targeted entities like the Moscow Exchange and Chinese companies supplying semiconductors to Moscow, aiming to limit Russia’s access to international financial markets. This has disrupted the normal operations of Russian banks in terms of international trade and cross-border payments. According to sources, Russian affiliates of Chinese banks have ceased processing settlements for Russia-China trade in dollars and euros, reflecting the broader impact on financial transactions.
Overall, Russian banks, including VTB, are navigating these challenges by adapting their strategies to comply with the new sanctions regime. This threatens secondary sanctions for foreign financial institutions dealing with Russia’s defense and intelligence sectors.
