Central Bank Governor Elvira Nabiullina announced on Friday that she wanted to take action against the drastic restrictions on foreign currency transfers that Russian subsidiaries of EU banks had introduced in response to ECB requirements. This was aimed in particular at RBI and UniCredit.
“We have sent orders to the subsidiaries of European banks in Russia prohibiting them from refusing to carry out transfers in foreign currencies or introducing technical obstacles to such transfers on grounds that do not comply with Russian law,” Nabiullina said at a press conference on a key interest rate hike in Moscow.
At the same time, these banks are prohibited from passing on customer information to their parent companies and other structures abroad for the purpose of creating whitelists, she explained, complaining of discrimination against Russian customers.
Only customers on the “White List”
Table of Contents
- 1 Only customers on the “White List”
- 2 Strabag lawsuit in Kaliningrad: Court rejects Raiffeisen’s application
- 3 – How is Russia’s Central Bank responding to the foreign currency transfer restrictions imposed by EU banks?
- 4 To evolve, it raises questions about the future of international banking relations and the impact on the Russian economy.
Table of Contents
According to published information on a lawsuit filed by UniCredit against the European Central Bank at the European Court of Justice (ECJ) in Luxembourg at the end of June, the ECB had specifically requested that European subsidiary banks in Russia reduce payments in euros, US dollars, Chinese yuan, British pounds, Kazakh tenge, Swiss francs and Japanese yen. Transfers should only be allowed to those customers who are on a “white list”, it was said.
While UniCredit is taking action against this requirement, among other things because of the ECB’s “local and functional lack of authority”, the RBI, which is also affected, has refrained from taking comparable legal action. Raiffeisen Russia itself had announced in mid-August, with reference to the ECB’s requirement, that it would no longer carry out outgoing transfers in foreign currencies for private customers of all kinds from September. When presenting the balance sheet for the first half of 2024 in July, it was stated that large international corporations that were on an approved list would also be able to carry out transfers in the future.
No further details on the order issued by the Russian central bank to its European subsidiary banks were made public over the weekend. It also remained unclear how the affected banks and their subsidiaries would deal with conflicting instructions from two central banks.
Strabag lawsuit in Kaliningrad: Court rejects Raiffeisen’s application
A commercial court in Kaliningrad, Russia, rejected Raiffeisenbank Russia’s request to lift an interim injunction on Friday. The background to this is the lawsuit filed by Russian Strabag shareholder Rasperia Trading Limited against the construction group, its core Austrian shareholders and Raiffeisenbank Russia. According to the interim injunction of September 5, shares in the RBI subsidiary cannot be sold, but RBI has announced legal action against it.
ePaper
– How is Russia’s Central Bank responding to the foreign currency transfer restrictions imposed by EU banks?
Russia’s Central Bank Takes Action Against EU Banks’ Foreign Currency Transfer Restrictions
In a bid to counter the drastic restrictions imposed by European banks on foreign currency transfers, Russia’s Central Bank Governor Elvira Nabiullina has announced that the bank will take action against these measures. The move is aimed at protecting Russian customers from discrimination and ensuring that they are not unfairly treated by European banks.
Background to the Crisis
The restrictions were introduced by European banks in response to requirements set by the European Central Bank (ECB). The ECB had requested that European banks reduce payments in certain currencies, including euros, US dollars, Chinese yuan, British pounds, Kazakh tenge, Swiss francs, and Japanese yen. The banks were instructed to only allow transfers to customers who were on a “white list”. This move was seen as a discriminatory measure that unfairly targeted Russian customers.
Russia’s Response
In response to the ECB’s requirements, Nabiullina announced that the Central Bank of Russia would issue orders to European banks’ subsidiaries in Russia, prohibiting them from refusing to carry out transfers in foreign currencies or introducing technical obstacles to such transfers. The banks are also prohibited from passing on customer information to their parent companies and other structures abroad for the purpose of creating whitelists.
Implications for Russian Customers
The restrictions imposed by European banks had significant implications for Russian customers. Raiffeisen Russia, a subsidiary of Raiffeisen Bank International (RBI), had announced that it would no longer carry out outgoing transfers in foreign currencies for private customers of all kinds from September. However, large international corporations that were on an approved list would still be able to carry out transfers in the future.
Legal Action
UniCredit, another European bank with a presence in Russia, has taken legal action against the ECB’s requirement, citing the bank’s “local and functional lack of authority”. RBI, on the other hand, has refrained from taking comparable legal action.
Court Ruling in Kaliningrad
In a related development, a commercial court in Kaliningrad, Russia, rejected Raiffeisenbank Russia’s request to lift an interim injunction on Friday. The injunction was issued in response to a lawsuit filed by Russian Strabag shareholder Rasperia Trading Limited against the construction group, its core Austrian shareholders, and Raiffeisenbank Russia.
Uncertainty Remains
Despite the Central Bank of Russia’s move to counter the restrictions, uncertainty remains about how the affected banks and their subsidiaries will deal with conflicting instructions from two central banks. The situation highlights the challenges faced by Russian customers in accessing foreign currency transfers and the need for a more comprehensive solution to this issue.
Keywords: Central Bank of Russia, Elvira Nabiullina, European Central Bank, foreign currency transfers, Russia, European banks, Raiffeisen Russia, UniCredit, white list, discrimination, Russian customers.
Meta Description: Russia’s Central Bank takes action against European banks’ foreign currency transfer restrictions, citing discrimination against Russian customers. Find out more about the implications of this move and the ongoing legal battle.
Header Tags:
H1: Russia’s Central Bank Takes Action Against EU Banks’ Foreign Currency Transfer Restrictions
H2: Background to the Crisis
H2: Russia’s Response
H2: Implications for Russian Customers
H2: Legal Action
H2: Court Ruling in Kaliningrad
* H2: Uncertainty Remains
To evolve, it raises questions about the future of international banking relations and the impact on the Russian economy.
Russian Central Bank Takes Action Against Foreign Currency Transfer Restrictions Imposed by EU Banks
The Russian Central Bank has launched a counterattack against the drastic restrictions on foreign currency transfers introduced by European Union (EU) banks, specifically targeting the Russian subsidiaries of Raiffeisen Bank International (RBI) and UniCredit. The move comes as a response to the European Central Bank’s (ECB) requirements, which have led to discrimination against Russian customers.
Only Customers on the “White List”
According to a lawsuit filed by UniCredit against the ECB at the European Court of Justice (ECJ) in Luxembourg, the ECB had requested that European subsidiary banks in Russia reduce payments in certain currencies, including euros, US dollars, and yuan. The ECB’s requirement stipulated that transfers should only be allowed to customers who are on a “white list.” This move has sparked controversy, with UniCredit arguing that the ECB lacks the authority to issue such a requirement.
Strabag Lawsuit in Kaliningrad: Court Rejects Raiffeisen’s Application
In a related development, a commercial court in Kaliningrad, Russia, has rejected Raiffeisenbank Russia’s request to lift an interim injunction. The injunction was imposed in connection with a lawsuit filed by Russian Strabag shareholder Rasperia Trading Limited against the construction group, its core Austrian shareholders, and Raiffeisenbank Russia. The interim injunction prohibits the sale of shares in the RBI subsidiary.
How is Russia’s Central Bank Responding to the Foreign Currency Transfer Restrictions Imposed by EU Banks?
In response to the ECB’s requirements, the Russian Central Bank has sent orders to the subsidiaries of European banks in Russia, prohibiting them from refusing to carry out transfers in foreign currencies or introducing technical obstacles to such transfers on grounds that do not comply with Russian law. Additionally, these banks are prohibited from passing on customer information to their parent companies and other structures abroad for the purpose of creating whitelists, which are seen as discriminatory against Russian customers.
The Russian Central Bank’s move is seen as a significant pushback against the ECB’s requirements, which have been criticized for being overly restrictive and discriminatory. The standoff has significant implications for the global financial system, highlighting the ongoing tensions between Russia and the EU.
Understanding the Implications
The restrictions on foreign currency transfers imposed by EU banks have had far-reaching implications for Russian customers, including individuals and businesses. By limiting access to certain currencies, these restrictions have effectively restricted the ability of Russian customers to engage in international trade and commerce.
The Russian Central Bank’s response is aimed at protecting the interests of Russian customers and ensuring that they are not unfairly discriminated against. However, the move also highlights the complexities of the global financial system and the challenges of navigating conflicting regulations and requirements.
As the situation continues
