Although UBS and Credit Suisse scaled back their activities in Russia since it invaded Ukraine, they're now barred from a complete withdrawal.
A court in Moscow has prohibited UBS and its subsidiary Credit Suisse from selling stakes in their Russian companies. This decision is based on an application by Russian Zenit Bank, according to a «Reuters» report citing court documents.
According to the report, the bank believes the Russian subsidiaries of UBS and Credit Suisse are preparing to cease their activities there.
Zenit fears this will expose it to the risk of a loss on a loan granted in October 2021. In November 2021, Zenit transferred $20 million to Luxembourg-based agribusiness Intergrain. Following the imposition of Western sanctions on the Russian bank, Credit Suisse told Zenit it would no longer transfer payments from Intergrain.
Russia Risk Reduction
In late July, UBS reported reducing its country risk exposure to Russia during the second quarter to $300 million from $400 million at the end of March and related mainly to trade finance in its Swiss business and to loans and links in its investment banking business.
UBS reiterated it was no longer accepting new business in Russia or from clients there. Assets of Russian clients who are neither Swiss nor EU residents still amount to just over $11 billion in UBS's Global Wealth Management business, or 0.4 percent of invested assets.
