HSBC orders staff to drop Russian banks VTB, VEB: memo

[LONDON] British bank HSBC is beginning to wind down relations with a host of Russian banks, including the second-largest, VTB, according to a memo seen by Reuters, even as financial institutions start implementing restrictions on Russia.

The United States, Britain, Europe and Canada announced new sanctions on Russia on Saturday - including blocking certain lenders' access to the Swift international payment system - following Russia's invasion of Ukraine.

The advisory notice from HSBC, one of the world's largest banks, tells staff how they should apply the new global sanctions on Russia.

Headed "Action required" and dated Feb 27, it highlights the fact that the UK Office of Financial Sanctions had authorised "the wind down of certain transactions involving VTB Bank and certain UK subsidiaries". The memo also said that entities that are 50 per cent or more owned by blocked individuals are also considered sanctioned. 

HSBC declined to comment.

REUTERS