Latest sanctions against Russian banks do not create systemic risks for sector - Nabiullina

MOSCOW. March 2 (Interfax) - The United States, the European Union, and the UK included a group of Russian credit institutions in their latest respective sanctions lists at the end of February, though this does not create systemic risks for the banking sector, Central Bank of Russia (CBR) Governor Elvira Nabiullina said.

The United States last week imposed blocking sanctions against the banking and credit institutions of Credit Bank of Moscow (MKB); Bank Saint Petersburg; Uralsib ; Zenit; MTS Bank ; Lanta Bank; Metallinvestbank; Levoberezhny; Primorye; SDM Bank ; and Ural Bank for Reconstruction and Development (UBRD). The EU has imposed sanctions on Alfa Bank, Rosbank , and Tinkoff Bank . The UK sanctions list includes Bank Saint Petersburg , Uralsib, Zenit Bank , and MTS Bank.

"The recent addition of new banks to the sanctions lists is no longer perceived as a shocking moment, and it does not create systemic risks," Nabiullina said on Thursday at the CBR's traditional meeting of its members of the Association of Banks of Russia.

According to Nabiullina, "They were better prepared in terms of reducing assets that could be blocked", when compared to banks that had been previously sanctioned.

They are also automatically subject to support measures that the regulator has previously implemented for such situations, she noted.