Shares of Russia’s Sberbank plunged over 95% on the Stock Exchange, to trade as low as a penny!!
- The Russian bank announced that it was pulling out of the European market.
- The Bank has lost 99.9% of its value since the start of the year.
Russia’s largest lender said its European subsidiaries had experienced “abnormal cash outflows” expressing concern for the safety of its employees and properties.
The European Central Bank ordered the closure of Sberbank’s European arm, suggesting it was “likely to fail” after Russia’s invasion of Ukraine triggered a run on deposits. CNBC cites sources from the bank
*CNBC Tweet on Sberbank stock collapse
Russia's Sberbank collapses 95% on London stock exchange as it exits Europe https://t.co/xF6VlJAS4M
— CNBC (@CNBC) March 2, 2022
Russia’s largest lender said its European subsidiaries had experienced “abnormal cash outflows” and expressed concern for the safety of its employees and properties.
The U.S., European Union and the U.K. intensified sanctions against Russia’s institutions, barring key banks from the SWIFT (international payment system) and restricting the Central Bank of Russia’s capacity to use its more than $600 billion in foreign currency reserves.
- Sberbank’s stock price provisionally closed more than 78% lower in London.
Other major London-listed Russian stocks saw similar declines on Wednesday,
*Moscow’s stock market has been closed for three consecutive days as authorities attempt to halt the financial fiasco