The European subsidiary Sberbank Europe AG of the Russian state bank Sberbank is on the brink of collapse, according to the European Central Bank (ECB). The bank is expected to be unable to repay its debts soon as a result of sanctions imposed on Russian banks over Russia’s invasion of Ukraine.

“The European Central Bank judges that Sberbank Europe AG and its two subsidiaries – Sberbank dd in Croatia and Sberbank banka dd in Slovenia – will go bankrupt as a result of a deterioration in their liquidity situation,” the ECB said in a statement on Monday.

(C)NU.NL 2022