The Zurich-based subsidiary is not part of Sberbank Europe Group that has been hit with sanctions from the European Union and the United States, a company spokesperson told the Swiss News Agency Keystone-SDA on Thursday.
Sanctions were imposed on a number of Russian individuals, companies and banks following Russia’s invasion of Ukraine a week ago. On Monday Switzerland said it would follow all of the sanctions imposed by the EU.
The Swiss Financial Market Supervisory Authority (FINMA) told Keystone-SDA that it is monitoring the situation.
Sberbank Switzerland has around 250 corporate clients, mostly related to the raw materials sector. It employs some 100 staff and in 2020 it generated a profit of CHF58 million ($63 million).
The Russian bank opened an entity in canton Zug in 2020, called Sber Trading Swiss, to finance the trade of oil, gas, metals and agricultural commodities.
Along with Gazprom Bank and VTB Capital Investment Management, a commodities financing unit of VTB Bank, Sberbank Switzerland is heavily involved in the trading of a range of energy products, raw food materials and metals from the Swiss commodity trading hub.
The theoretical departure of Russian banks from Switzerland could be compensated by a range of other banks that finance the flow of commodities around the world, according to one experienced Swiss trader who asked to remain anonymous.
Credit Suisse, UBS, cantonal banks, Crédit Agricole and Société Générale are among the Western banks that could step in to keep the Swiss trading hub financed.
But the Russian invasion of Ukraine has introduced increased price volatility throughout large sections of the commodities trading market, even for shipments unrelated to Russia, the trader said.
Diversity and equality ‘under threat’: ex-Swiss minister
This content was published on
Dismantling diversity programmes is a backwards step for equality, warns former Swiss government minister Simonetta Sommaruga.
Swiss regulator fines US bank Citi over fat-finger crash
This content was published on
Citigroup fined CHF500,000 by Swiss stock exchange regulator after a fat-finger trade caused a 2022 flash crash in European stocks.
Swiss steel industry offered four-year state subsidies
This content was published on
Strategically important steel companies in Switzerland are eligible for state aid from the start of this year until the end of 2028.
Swiss companies failing to observe equal pay obligations
This content was published on
Many Swiss companies are failing to carry out their legal obligation to monitor equal pay, says the Federal Office of Justice.
This content was published on
The Swiss Federal Supreme Court has overturned the conviction of a commodities trader who had been given a suspended sentence and fined CHF72 million.
This content was published on
After Switzerland joined EU sanctions targeting Russia, its commodities trading sector is having to face up to new economic realities.
Russia sanctions: Nord Stream 2 fires more than 140 people in Zug
This content was published on
Swiss-based company Nord Stream 2, which is in charge of the gas pipeline project between Russia and Germany, has made employees redundant.
Credit Suisse asks investors to destroy documents linked to oligarch yacht loans
This content was published on
The FT says the Swiss bank asked hedge funds and other investors to destroy loans documents relating to its richest clients’ yachts and private jets.
Swiss multinationals under pressure to untangle ties with Russia
This content was published on
Swiss companies are distancing themselves from Russia following the deadly attacks on Ukraine and subsequent economic sanctions.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.