[ad_1]
India’s top lender will not process any transactions involving Russian entities subject to international sanctions imposed on Russia after its invasion of Ukraine, according to a letter seen by Reuters and people familiar with the matter.
“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, said a letter sent by State Bank of India (SBI) to certain clients.
SBI did not immediately respond to emails or calls seeking comment on the matter.
“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,” said a senior SBI executive.
The invasion, which Moscow calls a “special operation” and which is the biggest assault on an European state since World War Two, was met with widespread condemnation and an array of sanctions.
India, which has deep trade and defense ties with Russia, has so far not publicly condemned its long-standing ally, but has called for an end to violence and for diplomacy and dialogue to resolve the conflict.
SBI in the letter to clients also urged “extra precautions” while handling any transactions related to sanctioned countries.
Many major Indian corporate houses have deep links with the state-controlled lender, which has a large network of overseas branches.
SBI has also sought information from Indian oil companies about their exposure to Russia including stakes in Russian assets, funds received from Russia in the last year and lenders involved in routing these transactions, according to two senior energy industry sources.
One of India’s top refiners, Indian Oil Corp, said on Monday it would no longer accept cargoes of Russian crude and Kazakh CPC Blend cargoes on a free on board (FOB) basis due to insurance risk.
Apart from oil companies, Indian fertiliser companies also deal extensively with Russia for imports of crop nutrients.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
[ad_2]
Source link