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Prior to the announcement from Deutsche Bank, the bank had faced a lot of criticism from various quarters for its continuous business ties with its Russian clients.
German multinational financial giant Deutsche Bank AG (ETR: DBK) has announced its plans to halt its business operations in Russia, in compliance with mainstream sanctions levied on the country for its invasion of Ukraine, the news has an impact on the shares. As reported by CNBC, the move comes a few days after the company’s Chief Financial Officer (CFO), James von Moltke said it is not practical for the bank to wind down its operations in Russia considering its responsibilities to its client base.
News Impacts Deutsche Bank Shares
“We’re there to support our clients. And so, for practical purposes, that isn’t an option that’s available to us. Nor would it be the right thing to do in terms of managing those client relationships and helping them to manage their situation,” he said at the time.
In a massive twist, the bank’s top management has announced the business closure as it joins a host of other international financial institutions to cut ties with Russia.
“Like some international peers and in line with our legal and regulatory obligations, we are in the process of winding down our remaining business in Russia while we help our non-Russian multinational clients in reducing their operations,” the bank said in a statement announcing the departure, adding that “There won’t be any new business in Russia.”
The news comes off as relieving for the bank’s investors who went all out on a buying spree on the Deutsche shares. The bank’s stock soared 6.73% to EUR10.24 at the time of writing.
Deutsche Bank Joins Financial Institution’s Exodus From Russia
In less than 3 weeks, a lot of companies have made their exit from Russia as they are either caught between obeying the country’s sanctions or detaching from Russia based on their inherent values.
The war has dented the good image of Russia as a hub to do business and besides Deutsche Bank, Goldman Sachs Group Inc (NYSE: GS), JPMorgan Chase & Co (NYSE: JPM), and HSBC Holdings plc (NYSE: HSBC) have all also pulled out of Russia in compliance with the sanctions.
Prior to the announcement from Deutsche Bank, the bank had faced a lot of criticism from various quarters for its continuous business ties with its Russian clients. The United Kingdom’s London Stock Exchange Group (LSEG) has also suspended the servicing of its Russian clients, days after it stopped sharing news and commentary based on new regulations from Moscow.
“LSEG confirms it is suspending all products and services for all customers in Russia, subject to any regulatory requirements,” the company said in a statement as reported by Reuters. “We continue to support our employees in the region. We are also engaging with our customers outside Russia who depend on us for data and pricing information inside Russia. We are evaluating alternative options to continue providing these services.”
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