UAE State Bank Emirates NBD stopped ruble transfers and closed accounts of Russian sub-sanctioned companies

The State Bank of the United Arab Emirates (UAE) Emirates NBD has stopped accepting transfers in rubles, closed accounts of Russian sub-sanctioned companies and individuals with balances of more than $5 million.

As it became known to The Wall Street Journal, the Dubai-based second largest bank in the UAE was forced to do so under the threat of secondary sanctions from the United States in light of sharply increased pressure from Washington.

In December last year, the US Treasury Department, after granting it broader powers, began to pursue foreign banks that facilitate transactions with Russia. At the risk of losing access to correspondent banks in the United States, the credit and financial institutions of the UAE, as well as Turkey and Austria began to refuse to cooperate with the Russian Federation.

Emirates NBD was one of the banks that, after the start of its operations in 2022, carried out transactions with Russian oil traders and even created a special department for working with the Russian Federation. However, the bank has now abolished the department, stopped making transactions in rubles and closed a number of accounts of Russian clients, as well as some companies doing business with Russia.

Turkish banks were also under pressure, which is why exporters in the country faced difficulties with payment. According to the publication, exports to Russia decreased by a third compared to a year earlier.

A similar warning from the United States was issued to Austrian banks. However, as noted, Raiffeisen BankInternational still maintains its presence in the Russian Federation.