State Bank of India (SBI) will not process any transaction of Russian entities that are subject to sanctions after Russia launched a military operation against Ukraine, Reuters reported citing sources.
In a letter sent to certain clients, SBI said “no transactions involving entities, banks, ports or vessels appearing” on the sanctions list of US, European Union or United Nations sanctions list shall be processed.
Go deeper with GlobalData
“We have a significant international presence, and we need to comply with U.S. and EU regulations as we are present in those jurisdictions and we cannot be seen as not adhering to these rules,” a senior SBI executive told the news agency.
Last week, Russia launched a military offensive against Ukraine. In response to Moscow’s move US and its allies have imposed several sanctions on Russia.
With deep trade and defence ties with Russia, India has called for an end to violence and a diplomatic solution to resolve the conflict.
Additionally, SBI, which is one of the country’s largest banks, has urged clients to take “extra precautions” while handling transactions concerning sanctioned countries.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataGovernment-controlled SBI is said to operate a large number of branches abroad and several key Indian firms have deep links with the lender.
The bank is also looking at the Russian exposure of firms operating in the oil industry.
SBI has sought information of their stake in Russian assets, Russian funds they have received and the lenders that processed these transactions.
