
The logo of Russia’s largest lender Sberbank in one of its offices in Moscow.
13:34 JST, March 26, 2022
Japan’s three major banking groups have decided to suspend all dollar transactions with Russia’s largest bank, Sberbank, from Saturday, officials from each of the three groups said.
The megabanks — Mitsubishi UFJ Financial Group, Inc., Sumitomo Mitsui Financial Group, Inc. and Mizuho Financial Group, Inc. — are aligning their actions with the U.S. government, which has imposed sanctions on Sberbank.
Since they have been paying in dollars for trade with Russia, such as for energy, the megabanks will need to seek alternative means for remittances.
The U.S. government said it would suspend interbank payments, remittances and other transactions between U.S. banks and Sberbank as well as its 25 subsidiaries on Saturday. The three megabanks also decided to take similar measures for transactions involving Japan. Mitsubishi UFJ will suspend not only transactions in dollars but all foreign currency transactions other than yen.
The megabank trio has blocked transactions in all currencies with financial institutions such as VTB Bank, Russia’s second-largest bank, and Bank Russia. These banks have been removed from the international settlement network, but Sberbank has been exempt from the sanctions, which made it one of the few routes to send money to Russia.
Sberbank is used by Japanese companies in Russia and their employees. Most energy transactions, which have not been subject to the sanctions, are conducted in dollars.
If remittances become impossible, the negative impact on Japanese companies doing business with Russia will be widespread. In that case, European banks that have bases in Russia could be used as an alternative means.
"Business" POPULAR ARTICLE
-
Average Retail Rice Price Up for Second Consecutive Week; More Than Double Same Period Last Year
-
Japan’s Cooperation in Alaska LNG Development Project Emerges in Japan-U.S. Tariff Negotiations; But Industry Concerns Exist
-
Trump: Nippon Steel Will Part Own U.S. Steel, U.S. to Be in Control; Share Distribution, Other Details Remain Unclear
-
‘Magnificent 7’ Could Adopt Stablecoins in Next 3 Years, Says Crypto Platform Founder
-
Japanese Small, Midsize Firms Increasingly Employing Foreign Workers; Effort Aims to Secure Talented Employees
JN ACCESS RANKING
-
Japanese Researchers Develop ‘Transparent Paper’ as Alternative to Plastics; New Material Is Biodegradable, Can Be Produced with Low Carbon Emissions
-
Average Retail Rice Price Up for Second Consecutive Week; More Than Double Same Period Last Year
-
Japan’s Cooperation in Alaska LNG Development Project Emerges in Japan-U.S. Tariff Negotiations; But Industry Concerns Exist
-
Trump: Nippon Steel Will Part Own U.S. Steel, U.S. to Be in Control; Share Distribution, Other Details Remain Unclear
-
Japan’s Maglev Shinkansen’s Partially Completed Station Unveiled; Station Will Be Only Underground Stop Between Shinagawa, Nagoya