Royal Bank of Scotland, Britain's largest state-owned lender, said it's cutting lending to Russian companies, following European banks including Societe Generale and Natixis in complying with the latest round of sanctions over Ukraine.
Exposure to Russian companies is £2.1 billion (€2.6 billion) as “limits have been cut and credit restrictions introduced,” RBS said.
Societe Generale’s deputy chief executive Severin Cabannes said the bank will refrain from doing new business with Russian clients, while Natixis CEO Laurent Mignon is putting some activities on hold.
The European Union followed the US in putting more pressure on Russia’s financial system in an effort to force president Vladimir Putin to end support for separatists in eastern Ukraine.
The bloc said it will prohibit Russian state-owned lenders including Sberbank and VTB Group from selling shares or bonds in the EU.
Western countries hardened their stance against Russia after a Malaysia Airlines jetliner was shot down in a rebel-held area of eastern Ukraine last month, killing all 298 people aboard.
Bloomberg
