Finnish group Nordea closes its bank in Russia

Exit group Nordea from Russia. Liquidation of the Russian division. Revocation of a license. Risks, responsibility.

The Finnish group Nordea closes its bank in Russia. This was reported on the RBC website.

The Nordea banking group has announced its withdrawal from the territory of the Russian Federation. It is worth noting that the company decided to focus on business development in the Scandinavian region. It will take about a year to liquidate the Russian division. The bank promised to ensure the fulfillment of all its obligations and provide customers with convenient conditions for closing accounts before leaving the country. The reduction of employees begins, who are promised several salaries. Those who disagree will receive an increased working hours up to 10 hours and strict reporting

Nordea Bank CEO Mikhail Polyakov says that after the annual general meeting, the organization will send an application to revoke the license to the Central Bank, which will decide on the closure of the bank in Russia.

Nordea entered the Russian market in 2006 by purchasing Orgresbank, which was later renamed Nordea Bank. In 2014, the bank was one of the top 30 largest credit institutions in Russia, but in 2015 it began to reduce retail loans in favor of creating a corporate investment block.

In May, Morgan Stanley completed the reorganization of his business in Russia, and the Central Bank revoked the license from Morgan Stanley Bank.

Elizaveta Razina, Senior Associate at Vetrov & Partners law firm, will comment on the closing of the bank.

One of the reasons for such actions may be the understanding of insufficient control over legal and other risks in the activity, for example, associated with the application of 115-FZ or bankruptcy law. In the latter case, there is almost one hundred percent bringing the management and owners of the bank to subsidiary liability. Consequently, the price of risk is already completely different with businesses comparable to other countries.

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