Commerzbank to Accelerate Exit from Russian Market, Regardless of Ukraine Ceasefire
Commerzbank has made the strategic decision to reduce its business in Russia as much as possible, according to the bank’s risk management chief, Bernd Spalt, in an interview with the Handelsblatt. This decision is independent of whether a ceasefire is reached in Ukraine or sanctions are lifted.
US officials reported that US President Donald Trump and Russian President Vladimir Putin agreed on Tuesday to aim for a limited ceasefire for energy and infrastructure goals. This could potentially lead to the lifting of US sanctions against Russia.
However, Spalt does not expect the EU and the UK to lift their sanctions even if the US does so, he said. “We have massively reduced our business in Russia. A sale is the best option, but it’s not trivial due to the sanctions” he added.
Italian bank Unicredit is only willing to sell its Russian subsidiary at a fair price, while the Dutch ING announced in January that it would sell its Russian business at a loss. Commerzbank, according to Spalt, would also be willing to do so. “We are aware that, for the foreseeable future, it will be impossible to achieve a reasonable sale price in Russia” the risk management chief said. “Currently, there are more sellers than buyers.