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March 29, 2022

Credit Suisse pulls back on new businesses in Russia amid sanctions

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Credit Suisse Group has decided to stop pursuing new business in Russia in a bid to further distance itself from the country, which has been imposed numerous sanctions over its military invasion on Ukraine, reported Bloomberg.

The Swiss investment bank is also helping clients slash their exposure, according to an internal document seen by the news agency.

In addition, the bank is helping employees in the country to move to other locations after cutting roles in the country.

The content of the document was confirmed by a Credit Suisse spokesperson.

Last week, Credit Suisse CEO Thomas Gottstein said the firm was in the process of reviewing its business in Russia and is yet to finalise a decision regarding its operations in the country.

Earlier this month, the Zurich-based bank stated its market risk exposure to Russia was $906m.

Russian clients are said to account for nearly 4% of its wealth management assets.

Following a slump in the value of assets linked to Russia, Credit Suisse triggered margin calls to its wealth management clients, who use Russian assets as collateral.

The bank had around 125 employees working across wealth management and investment bank divisions at its Russia office.

Investigation on Russia sanctions compliance

The US lawmakers are probing Credit Suisse over its compliance with sanctions linked to Russia, reported by Reuters citing a letter sent by the US House of Representatives’ Committee on Oversight and Reform to Gottstein.

The bank has been instructed by the lawmakers to submit all relevant documents in connection with the financing of yachts and private jets owned by sanctioned Russian individuals, the report said.

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