Sberbank securities drop 75.11% at London ICE

Securities of the Russian Sberbank on the London Stock Exchange fell by 75.11% to $1.011 after the start of trading.

Report informs citing TASS that this is evidenced by trading data as of 11:45 Moscow time.

At the moment, trading in securities is suspended.

12:34

The European Central Bank (ECB) has assessed that Sberbank Europe AG and its two subsidiaries in the banking union, Sberbank d.d. in Croatia and Sberbank banka d.d. in Slovenia, are failing or likely to fail owing to a deterioration of their liquidity situation, Report informs referring to the ECB website.

The Austrian parent bank Sberbank Europe AG is fully owned by Public Joint-Stock Company Sberbank of Russia, whose majority shareholder is the Russian Federation (50% plus one voting share).

The ECB took the decision after determining that, in the near future, the bank is likely to be unable to pay its debts or other liabilities as they fall due.

Sberbank Europe AG and its subsidiaries experienced significant deposit outflows as a result of the reputational impact of geopolitical tensions. This led to a deterioration of its liquidity position. And there are no available measures with a realistic chance of restoring this position at group level and in each of its subsidiaries within the banking union.

Retail depositors are protected up to €100,000 per depositor per bank in the European Union. This protection is granted by the deposit guarantee schemes in place in Austria, including for the German branch of the bank, Croatia and in Slovenia.

In line with its mandate, the Single Resolution Board needs to confirm the ECB’s failing or likely to fail assessment and will decide on and implement subsequent steps.

Sberbank Europe AG has subsidiaries in the Federation of Bosnia and Herzegovina, the Republic of Srpska, the Czech Republic, Hungary, and Serbia. The ECB has coordinated with national competent authorities in those jurisdictions throughout the process.