Sberbank, Russia’s largest lender, announced that it will begin providing banking services to corporate clients in eastern Ukraine’s partially occupied Luhansk and Donetsk regions starting on June 25. Anatoly Popov, Deputy Chairman of the Executive Board at Sberbank, stated that the bank will assist with business registration, opening bank accounts, obtaining Federal Tax Service numbers, and providing cash settlement services. Corporate clients in the Luhansk region will be able to access banking services at Russian government service centers, with plans to open offices in both regions to service both corporate and individual clients.
The decision by Sberbank to expand into the occupied Ukrainian regions comes shortly after the state-owned VTB Bank announced similar plans. Russian President Vladimir Putin has encouraged Russian banks to be more active in expanding into these regions, which the Kremlin refers to as its “new territories.” Promsvyazbank was the first Russian lender to launch operations in the Luhansk and Donetsk regions. Sberbank’s expansion efforts follow a record net profit of 1.5 billion rubles in 2023, a significant increase from the previous year’s earnings, which were impacted by Western sanctions related to the invasion of Ukraine.
Sberbank faced sanctions for its involvement in the invasion of Ukraine, leading to its withdrawal from the European market. Despite these challenges, the bank has continued to grow its operations, including launching services in annexed Crimea. With over 100 million customers in Russia and several former Soviet republics, Sberbank has established itself as a major player in the region’s financial sector. By providing services to corporate clients in the occupied Ukrainian regions, Sberbank aims to further expand its presence and influence in the area.
The move by Sberbank to offer banking services in eastern Ukraine’s partially occupied regions reflects a broader effort by Russian banks to increase their presence in these territories. By opening offices and providing various banking services, the state-owned lender aims to support businesses and individuals in the Luhansk and Donetsk regions. Despite facing sanctions and other challenges, Sberbank has continued to grow its operations and expand into new markets, including territories that have been annexed or partially occupied.
Sberbank’s announcement to begin servicing corporate clients in the Luhansk and Donetsk regions highlights the bank’s commitment to expanding its reach and influence in the region. With plans to open offices and offer a range of financial services, Sberbank aims to support businesses and individuals in these partially occupied territories. As other Russian banks also seek to establish a presence in the region, the financial sector in eastern Ukraine may see increased competition and services, potentially benefiting clients in the long run.
