In response to Russia’s invasion of Ukraine, Cypriot lender RCB Bank plans to liquidate its retail operations, making it the first bank to return money to depositors.
The bank, which was established in 1995 as a subsidiary of Russian state-owned VTB Bank, has long been a preferred lender among Cyprus’ sizable Russian ex-pat community.
It was once known as Russian Commercial Bank, and it is effectively closing down before customers’ concerns about the crisis in Ukraine cause it to follow in the footsteps of Sberbank’s Austrian counterpart, which was thrown into administration this month after a run on its accounts.
In response to Russia’s invasion of Ukraine, Cypriot lender RCB Bank plans to liquidate its retail operations, making it the first bank to return money to depositors.
The bank, which was established in 1995 as a subsidiary of Russian state-owned VTB Bank, has long been a preferred lender among Cyprus’ sizable Russian ex-pat community.
It was once known as Russian Commercial Bank, and it is effectively closing down before customers’ concerns about the crisis in Ukraine cause it to follow in the footsteps of Sberbank’s Austrian counterpart, which was thrown into administration this month after a run on its accounts.
Sberbank Europe, a subsidiary of Russia’s largest bank, went bankrupt in early March, and its European businesses were either transferred to local rivals or shut down.
VTB, Russia’s second-largest bank, has started shuttering its Frankfurt offices and laying off investment banking employees in London.
VTB has been progressively selling down its RCB holding, which was 46% last month. VTB’s interest in the bank was sold to “Cypriot shareholders of the bank who represent management” on February 24, the first day of Russia’s invasion.
Kirill Zimarin, a Russian former VTB executive with a Cypriot passport, raised his stock in the bank as part of the acquisition.