New Delhi/Mumbai: State Bank of India (SBI), India’s largest lender, will not complete deals with Russian companies subject to international sanctions imposed by Russia, according to a letter seen by Reuters and people familiar with the intrusion imposed on him by Ukraine.
According to a letter SBI sent to certain clients, “transactions with any US, EU or UN sanctions list-listed organisations, banks, ports or ships will not be processed, regardless of the currency of the transaction”.
SBI did not immediately respond to emails or calls seeking comment on the matter.
“We have a significant international presence and must comply with US and EU regulations because we operate in these jurisdictions and we cannot assume that we do not comply with these rules,” said a senior SBI executive.
Dubbed a “special operation” by Moscow, the invasion was the largest attack on a European country since World War II and drew widespread condemnation and a slew of sanctions.
India, which shares close trade and defense ties with Russia, has so far not publicly condemned its longtime ally, instead calling for an end to the violence and a solution to the conflict through diplomacy and dialogue.
SBI’s letter to clients also called for “extra precautions” when dealing with sanctioned countries.
Many of India’s largest companies are closely linked to the state-owned bank, which has a vast network of overseas offices.
According to two senior energy industry sources, SBI also obtained information from Indian Oil Corporation about its involvement in Russia, including interests in Russian assets, funds received from Russia last year and lenders involved in facilitating the deals.
Indian Oil Corp, one of India’s largest refiners, said on Monday it would no longer accept cargoes of a blend of Russian crude and Kazakhstan CPC on a free-on-board (FOB) basis due to insurance risks.
Apart from oil companies, Indian Fertilizer Corporation also trades extensively with Russia to import fertilizers.
Complete News Source : NDTV
