The logo of the Russian state-owned bank Sberbank is depicted next to a red light at the headquarters of its European subsidiary in Vienna on February 28, 2022.
Roland Schlager AFP | Getty Images
LONDON – Shares of Russia’s Sberbank fell 95% on the London Stock Exchange on Wednesday to trade for only a penny after the bank announced it was withdrawing from the European market.
Russia’s largest creditor said its European subsidiaries had experienced “unusual cash flows” and expressed concern about the safety of its employees and property.
The European Central Bank has ordered the closure of Sberbank’s European division, the Austrian financial market said on Wednesday, suggesting it had “failed or is likely to fail” after Russia’s invasion of Ukraine sparked deposit pressures.
The United States, the European Union and the United Kingdom have stepped up sanctions against Russian institutions in recent days, banning key banks in the international payment system SWIFT and limiting Russia’s central bank’s capacity to use its more than $ 600 billion in foreign exchange reserves.
As of late morning trading in London, Sberbank shares fell 94.24% to $ 0.01. The bank has lost 99.9% of its value since the beginning of the year.
Other major Russian stocks listed in London fell similarly on Wednesday, including Lukoil, Novatek and Rosneft.
In the domestic market, Moscow’s stock market has been closed for three consecutive days as authorities try to stop bleeding on local assets.