Global banks distance themselves from Russia, fearing US sanctions

Global banks that helped Russia circumvent sanctions are now distancing themselves, fearing punishment from the US Treasury. Institutions in the UAE, Turkey, and Austria are shifting away from Russian business.

In December, a US executive order gave the Treasury more power to sanction foreign banks that do business with Russia. Targeted banks could lose access to the US financial system.

Banks changing course include Emirates NBD in the UAE, which shut down its Russia department and closed Russian accounts. Turkish banks have also faced payment issues.

Turkish exports to Russia dropped 33% due to sanctions pressure. A key Turkish oil terminal stopped Russian imports in March.

Austrian banks like Raiffeisen maintain a Russian presence but are finding it difficult to exit the country.