Russian Deputy PM hints at struggles facing top lender Sberbank | Investment News

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(Reuters) – Russia’s main lender Sberbank is still trying to finance property developers despite “difficulties and losses” the sanctioned bank is experiencing, Deputy Prime Minister Marat Khusnullin said on Tuesday, the news agency reported. RIA.

Khusnullin gave the first glimpse of the pressure unprecedented sanctions against Moscow are placing on the dominant lender, which has stopped publishing financial reports.

Khusnullin said bank financing for property developers was going badly and he discussed the issue in detail during a meeting with Sberbank CEO German Gref.

“They are now trying, despite the difficulties and losses they have, to provide funding,” he said, as quoted by RIA. “If necessary, that means we will look at possible additional capitalization and support. But the key theme is that banks should provide funding.”

Sberbank declined to comment.

The bank, which posted record profits in 2021 of 1.25 trillion rubles ($17.30 billion), said it had enough reserves to calmly respond to external pressures.

The United States imposed full blocking sanctions on Sberbank earlier this month, putting pressure on Russia over what Moscow calls its “special military operation” in Ukraine.

Copyright 2022 Thomson Reuters.

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