Global finance struggles with Ukraine crisis after share falls
International financial firms grapple with the Ukrainian crisis after the significant decrease of shares as a result of Russia’s attack on Ukraine.
Russia is the EU’s 5th largest partner in trade, with a five percent share. Meanwhile, many bankers disparage the role of Russia in their activities.
Germany’s giant lender Deutsche Bank informed that it created a contingency plan after the United States gave sanctions on Russia.
UK Lloyds Bank noted that it was on alert for cyber-attacks. Meanwhile, Alliianz, financial services provider, informed that it froze bond exposure with the authorities of Russia.
American banks were prepared for the measures on Russian attack. But they think additional steps can make the enforcement more complex and expensive.
The US has applied sanctions on Russia’s major banks, incorporating Sberbank and VTB bank, which had the objective of restricting the accessibility to the American financial system.
Shares in VTB decreased by 41 percent, while in Sberbank by 37 percent.
The banks which operate mostly in Russia are the ones who suffered strongly from Russia’s attack on Ukraine, which was the largest invasion across the European continent after the Second World War.
The figures of the fallen shares are mentioned down below:
- Raiffeisen Bank International in Austria – 23 percent
- Societe Generale – 12 percent
- UniCredit – 13.5 percent
- Deutsche Bank – 11 percent
The authorities of the EU are intended to apply novel embargoes on Moscow by the means of freezing its assets and depriving its banks from accessibility to the European finance market.
The PM of the United Kingdom, Boris Johnson, presented a set of strict penalties on Moscow to target the banks, relatives of the state president and the rich who enjoy their life in London.