How Russian bankers are preparing for new US 'sanctions from hell'

This week, the US Congress began work after the holidays. On Thursday, the Senate Banking Committee held expert hearings on the introduction of new sanctions against Russia. Almost unanimously, the participants decided that the sanctions should be expanded. A forum at which Russian bankers discussed possible sanctions was held in Sochi. And although officially this topic was not on the agenda, it was not without discussion.

Фото: Depositphotos

Bankers at the forum discussed “sanctions from hell.” This is the name of the bill that Republican and Democratic senators introduced to Congress in early August. The bill involves “blocking and prohibiting transactions” with property and in the interests of the largest Russian financial institutions with state participation. These include Sberbank, VEB, VTB, Rosselkhozbank, Promsvyazbank, Gazprombank. One of the forum participants said Bi-bi-sithat came to Sochi, among other things, in order to clarify the situation with the sanctions and their impact on Russian banks.

In fact, this will mean a ban on transactions with dollars. Another painful measure proposed by senators is a ban on transactions with Russia’s new national debt. Barclays previously warned that this scenario would have significant consequences for the entire Russian economy and banking system.

Russian service BBC asked for comments in the listed banks. Sberbank declined to comment, the rest did not respond to the request.

The head of VTB, Andrei Kostin, on Thursday, September 6, in an interview with the Rossiya 24 TV channel, said that the law on new sanctions “will pass in some form.” “If they go down this path... through the financial sector, this is, of course, a heavy blow, this is really an economic war, there is no doubt about it, this is a war worse than the cold one,” he said. “We must be prepared and build our line of defense,” Kostin added.

“We, of course, have a program for extreme cases when there is a fire. Of course, it exists, I don’t usually tell it. There is a set of solutions on how to save clients, assets, and so on,” he told reporters in Moscow on the same day (quoted by Reuters).

Фото: Depositphotos

What are bankers waiting for?

“Banks, of course, calculate these risks. Without a doubt... There are no naive players in Russia anymore,” Alexander Murychev, vice-president of the Russian Union of Entrepreneurs and Industrialists and former president of the Association of Russian Banks, tells the BBC.

According to him, banks are now “readjusting to work with the ruble and other currencies” and are trying to minimize the risks of settlements in dollars.

“It cannot be said that the largest state-owned [banks] are worse off, while those privately owned [private banks] are better off. This will have a very bad effect on everyone,” says Alexey Panferov, deputy chairman of the board of Sovcombank.

According to him, there may be problems with settlements, but at the same time the banking system will not be paralyzed.

Many banks are preparing for the worst after the introduction of sanctions against Russian companies in April, including the structures of Oleg Deripaska, as well as the collapse of the Russian market, says Panferov. They try to maintain liquidity and maintain “the ability to go into cash,” he explains.

Russian banks have really saved up a lot of money and are afraid to actively lend. As of September 7, the liquidity surplus in the banking sector, according to the Central Bank, is just over 3,048 trillion rubles. This means that banks do not need to take money from the Central Bank. On the contrary, they have so much money that they place them in the Central Bank.

“I think geopolitics is influencing [strategy] more now. Therefore, it is better to sit on liquidity, see what is happening, and prepare technologically,” says Tatyana Ushkova, Chairman of the Board of Absolut Bank.

“We have already adapted one way or another to this story. But there is nothing good about this,” Vladimir Senin, deputy chairman of the board of Alfa Bank, tells the BBC.

Фото: Depositphotos

Bankers believe in the Central Bank

“Is the banking sector and financial system of Russia ready to withstand this? Well, undoubtedly, yes,” believes Senin.

In his opinion, everything will depend on the actions of the Central Bank, which has “a whole set of tools” that can mitigate the consequences of new restrictive measures.

Ushkova notes that bank clients are now divided into those who may “fall under sanctions” and those who are unlikely to fall under sanctions. For the former, special banks like Promsvyazbank are created. “We will fight for everyone else,” she says.

In her opinion, the banking system has already adapted to the sanctions: “The banks themselves have already survived and built relationships with foreign banks.” State-owned banks included in the bill of American senators are already under sanctions and are not cut off from long-term financing abroad, she recalls.

“Over the past five years, Russia has taken the right steps to protect its financial system: the transition to a floating exchange rate and inflation targeting make it possible to survive sectoral sanctions,” says Valery Weisberg, director of the analytical department of the Region Investment Company.

He recalls that over the past few months, Russia has reduced its investment in US treasuries to a historic low.

Read also on ForumDaily:

Russian grandmothers burned the iPhone in response to US sanctions. VIDEO

Recall all: what sanctions were imposed against Russia for 4 of the year

How did US sanctions affect Russian oligarchs

Turkish residents are breaking iPhones in protest against US sanctions. VIDEO

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.