Russian state-owned banks have started opening branches in the territories of Ukraine under Russian occupation. This was reported by the Financial Times, according to Komersant ukrainskyi
Until now, many large Russian retailers, banks and other companies have avoided official presence in the occupied Crimea, as well as in the territories of Donetsk and Luhansk regions. However, the situation has changed – now two of Russia’s largest state-owned banks, Sberbank and VTB, are opening branches in these territories.
Sberbank, which has been under Western sanctions since 2022, has already opened 130 ATMs and 48 branches in eastern and southern Ukraine, including full-size offices. In addition, the bank returned to Crimea, opening its first branch there after an eight-year hiatus that began in 2014 following the peninsula’s annexation.
Sberbank’s new branches include half a dozen mobile offices in Mariupol. As for VTB, which has also been under sanctions since 2022, the bank announced that it would open stationary offices in Mariupol by the end of the year. VTB CEO Andrey Kostin inaugurated the first branch in occupied Luhansk in July.
Promsvyazbank is another bank active in the occupied territories. It was the first to open branches in Donetsk and Luhansk oblasts and currently has almost 400 branches in these regions.
Although other consumer companies are gradually emerging in the occupied territories, many Russian retailers and brands are still refraining from opening businesses due to concerns about sanctions and the risks of operating in the war zone. According to one of the representatives of the Russian retail sector, most companies consider these areas unattractive due to the low purchasing power of the population, which is dominated by pensioners and public sector employees.
Nevertheless, some companies are opening branches in the occupied territories as a way of demonstrating patriotism. For example, the Black Star Burger restaurant chain, co-owned by rapper Timati, announced plans to open locations in Mariupol and Kherson region.
Sberbank is subject to sanctions imposed by the United States, the European Union, the United Kingdom, Japan, Australia, Canada, and Switzerland. European sanctions against Sberbank and several other Russian banks came into effect on 14 June 2022. They were disconnected from the SWIFT interbank system.