Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict

French banking group Credit Agricole has paused financing new business deals associated with Russia after the country was hit by an array of sanctions, reported Bloomberg.

The sanctions were placed on Russia after it launched a military operation on neighbouring Ukraine.

The Montrouge-headquartered bank temporarily ceased lending to new businesses linked to Russia, people aware of the development told the news agency.

This includes a halt on financing for projects and movements of commodities.

Credit Agricole corporate and investment banking unit was quoted by Bloomberg as saying in an email: “In the current context, we are now only dealing with Russian counterparties in exceptional cases, and in response to very specific needs.”

The news comes as banks continue to be wary about the increasing sanctions unleashed on Russia by the US and its western allies in response to the Ukraine attack.

The sanctions, which targets Russia’s central bank and financial system, also included cutting off several Russian banks and financial institutions from the international payment network SWIFT.

According to the report, the lenders are worried about the risk of doing energy deals with Russia.

Societe Generale and Credit Suisse are said to be among the banks that suspended financing for the movement of commodities from Russia, including oil and metals.

Dutch lender ING Groep and Rabobank also limited lending to raw-material businesses involving the movement of commodities from both Russia and Ukraine.

Meanwhile, several asset managers, including JP Morgan and Dankse Bank, have frozen their funds exposed to Russian assets amid a plummeting market.