Russia’s Sberbank collapses 95% on London exchange as it exits Europe
A red traffic light is shown next to the Russian State-Owned Bank Sberbank logo at its European subsidiary headquarters, Vienna on February 28, 2022.
Roland Schlager | AFP | Getty Images
LONDON — Shares of Russia’s SberbankThe London Stock Exchange plunged 95% Wednesday to trade as low as a pennyFollowing the announcement by the bank that it would be leaving the European Market,
Russia’s biggest lender claimed that its European subsidiaries experienced “abnormal liquidity outflows”, and raised concerns about the safety and security of their employees.
Sberbank’s European division was shut down by the European Central Bank. The Austrian Financial Market Authority stated Wednesday that this indicated it was failing or most likely to fail. Russia’s invasion of UkraineThis triggered a bank run.
Recent days have seen the U.S., European Union, and U.K. increase sanctions on Russia’s institutions. barring key banks from the SWIFT international payment systemrestricting Russia’s ability to access its foreign currency reserves of more than $600billion.
Sberbank shares fell 94.24% as of London morning trade to $0.01. Since January 1, the bank lost 99.9%.
Similar declines were seen in other major Russian stock exchanges listed in London on Wednesday. Lukoil, NovatekAnd Rosneft.
Moscow’s Stock Market has been shut down for the past three days in an attempt to stop local asset losses.