FRANKFURT – Several European Sberbank Russia subsidiary banks are in trouble or on the verge of collapse due to the reputational damage of the War in Ukraine. The supervisor of lenders, the European Central Bank said Monday.

Sberbank Europe AG had assets totalling 13.64 billion euro ($15.3 billion) as of the close of the last year. It suffered a rapid outflow of deposits in recent days, and it is most likely that it will fail to repay its debts and other liabilities.

The Single Resolution Board of Europe has imposed a payment moratorium at three banks. It will then assess whether the public interest is to save them.

According to the ECB, “Sberbank Europe AG was subject to significant outflows of deposits due in part to geopolitical tensions.”

The ECB stated that this had led to a deterioration in its liquidity position. There are not any available options that could restore this situation at the group and each subsidiary levels of the banking union.

Sberbank Europe AG has also subsidiaries in countries outside of the European banking union. These include Hungary, Serbia, Bosnia and Herzegovina, Serbia, and the Czech Republic.

These are not under the ECB’s control so the bank has contacted the local supervisors.

Protected retail depositors in the European Union are up to 100,000 Euros per bank

($1= 0.8940 euros)