The State Bank of India (SBI) will not be processing any transactions that involve Russian entities due to the sanctions imposed on Moscow amid their ongoing war with Ukraine.
“No transactions involving entities, banks, ports or vessels appearing on a US, European Union or United Nations sanctions list shall be processed irrespective of the currency of the transaction,” a letter circulated by SBI to some clients read, as reported by Reuters.
“We have a significant international presence and we need to comply with U.S. and EU regulations as we are present in those jurisdictions and we cannot be seen as not adhering to these rules,” a senior executive of India’s top lender explained.
SBI has also appealed to its clients to practice ‘extra precautions’ whilst handling transactions linked to sanctioned countries.
Meanwhile, the state-run bank has asked for further details from the Indian oil companies regarding their Russian connections. This includes information about their stakes in Russian assets, funds that they obtained from Moscow in the previous year and also the lenders that routed those transactions.
Indian fertiliser companies are largely involved in trades with Russia for the imports of essential crop nutrients as well.
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