India’s top state-run bank will not conduct any transactions with banned Russian entities due to international sanctions imposed on Russia after its invasion of Ukraine. This information has been given on the basis of a letter seen by Reuters and people associated with the matter. In a letter sent by the State Bank of India (SBI) to certain customers, it has been said that any transaction involving “entities, banks, ports or ships included in the sanctions list of the US, the European Union or the United Nations”. “Irrespective of the currency of the transaction will not be completed.
SBI did not immediately respond to emails or calls seeking information on the matter.
A senior SBI official said, “We have a significant international presence and being under their jurisdiction, we need to comply with US and EU regulations. We are not seen as non-compliant. May go.”
The invasion of Ukraine, which Moscow calls a “special operation”. It is the largest attack on a European state since World War II. This was followed by widespread condemnation and a series of sanctions.
India, which has deep trade and defense ties with Russia, has so far not publicly denounced its longtime ally Russia. But India has called for diplomacy and dialogue to end the violence and resolve the conflict.
Economists cut growth forecast for FY22 after GDP numbers weaken in Q3
SBI, in a letter to customers, also urged them to take “extra caution” during any transaction involving restricted countries. Several leading Indian corporate houses have close ties with this state-run bank, which has a large network of overseas branches.
According to two senior sources in the energy industry, SBI has sought information from Indian oil companies about their exposure in Russia including stake in Russian assets, funds received from Russia last year and lenders involved in routing these transactions.
Indian Oil Corp, one of India’s top refiners, on Monday said it will no longer accept Russian crude and Kazakh CPC blend cargoes on freon on board (FOB) basis due to insurance risk.
On the other hand apart from oil companies, Indian fertilizer companies also do business extensively with Russia for import of crop nutrients.
,