FRANKFURT (Reuters) -German banks on Tuesday called on policy makers to ensure that new sanctions against Russia are “precise and unambiguous”, removing any room for interpretation that could make it hard for financial firms to carry them out.
The statement from Germany’s BdB banking lobby comes as EU ambassadors in Brussels were set to discuss a wider sanctions package after Russian President Vladimir Putin ordered troops into breakaway regions of eastern Ukraine.
European Union foreign ministers may decide on Russia sanctions after a meeting in Paris this afternoon.
Europe’s banks – particularly those in Austria, Italy and France – are the world’s most exposed to Russia.
Lenders throughout Europe have been bracing for stiffer sanctions targeting Russia. Non-compliance would risk stiff penalties.
“For banks, it is crucial that sanctions are formulated in a sufficiently precise and unambiguous manner, i.e. do not leave any questions open for interpretation,” the German banking association said in a statement.
Austria’s Raiffeisen Bank International, with big operations in Russia and Ukraine, said business was now normal, but “in the event of an escalation, the crisis plans that the bank has been preparing over the past few weeks will come into effect.”
ING of the Netherlands, which has a large Russia presence, said: “A further escalating conflict could have major negative consequences.”
For now, banks are in limbo until sanctions become concrete. “We are monitoring the situation,” said a spokesperson with the European Banking Federation in Brussels.
(Reporting by Tom Sims, Alexandra Schwarz-Goerlich in Vienna and Toby Sterling in Amsterdam; editing by Kirsti Knolle and Madeline Chambers)
