National Bank: EU Sanctions Against VTB Will Not Affect Financial Stability
Photo: VTB Bank
Deputy Chair of the National Bank of Kazakhstan, Yerulan Zhamaubayev, stated that the EU sanctions imposed on VTB Bank Kazakhstan will not significantly impact the country’s financial stability, Orda.kz reports.
Zhamaubayev emphasized that the Kazakhstan-based branch is a subsidiary of Russia’s VTB Bank, which has already been under Western sanctions for several years.
We practically never conduct any transactions through VTB. This bank doesn't have a significant impact on financial stability overall, so I don't think sanctions against VTB could cause serious concerns or risks for the economy,
said Zhamaubayev.
According to him, the authorities are now assessing the potential effects, including how many depositors the bank has and how sanctions might affect them.
If any bank in Kazakhstan encounters problems or closes, we have a deposit guarantee system. We systematically monitor risks and will take the situation into account. The bank's clients should not be affected,
he added.
Zhamaubayev also noted that EU sanctions have been in place for several years and that Kazakhstan closely monitors compliance to avoid secondary sanctions.
Every bank, every business entity in Kazakhstan is under close scrutiny. The government is closely monitoring the situation to ensure secondary sanctions do not arise in Kazakhstan.
The European Union recently approved a 19th package of sanctions against Russia over the war in Ukraine, which included VTB Bank’s Kazakhstan-based subsidiary.
Around the same time, U.S. President Donald Trump announced new sanctions on Russia’s largest oil companies, Rosneft and Lukoil.
Original Author: Anastasia Prilepskaya
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