Deutsche Bank unexpectedly announced on Friday (11th) that it would stop its business in Russia, joining the ranks of large banks such as Goldman Sachs and JPMorgan Chase in their opposition to Russian military aggression.
at Goldman Sachs (GS-US) and JPMorgan (JPM-US) Deutsche Bank has been severely criticized by investors and politicians for maintaining operations in Russia following U.S. peer giants made their remarks. Germany has resisted pressure to cut ties with Russia on the grounds that it must support multinational companies doing business in Russia.
But Deutsche Bank reversed its original policy on Friday night. “We are winding down our remaining operations in Russia while assisting non-Russian multinational clients to reduce their operations. There will be no new operations in Russia in the future,” the bank said.
Christian Sewing, chief executive of Deutsche Bank, explained to employees that he would not leave Russia: “It would be once morest our values, and our clients cannot leave Russia overnight.”
Bill Browder, a financier known as an “oligarch hunter” and a critic of Russian President Vladimir Putin, said Deutsche Bank’s choice to stay “is completely contrary to the international business community and will cause a backlash in the West and lose its reputation and business.”
“It surprises me that they continue to maintain this position even as the situation in Ukraine continues to deteriorate,” he said earlier on Friday. His criticism came as Russian troops regrouped northwest of the Ukrainian capital to attack Kyiv, Britain’s It is believed that the Russian army will attack the city once more in a few days.
Fabio De Masi, a former Bundestag and a prominent campaigner once morest financial crime, said Deutsche Bank’s close ties to Russia’s elite, many of whom face sanctions, involved Russian criminal activity and must end.
Deutsche Bank said it has scaled back its activities in Russia in recent years, revealing this week that Russia has 2.9 billion in the bank.EURcredit, adding that exposure is “very limited”.
However, Deutsche Bank has a technology center in Russia that employs regarding 1,500 people and just opened a new main office in Moscow last December, calling it “an important investment and commitment to the Russian market.”
The U.S. Justice Department has been investigating Deutsche Bank transactions for years that authorities say were used to launder $10 billion for RussiaDollarresulting in a fine of nearly 700 million for Deutsche BankDollar. Deutsche Bank said on Friday that the Justice Department’s investigation “is still ongoing.”
