Germany’s Deutsche Bank to wind down Russia business

The lender joins other companies pulling out of Russia amid the conflict with Ukraine

Germany's Deutsche Bank said there won’t be any new business in Russia. Reuters / Ralph Orlowski

Germany’s largest lender, Deutsche Bank, is in the process of winding down its operations in Russia amid the conflict with Ukraine.

The bank joins other companies that are pulling out of Russia as the country intensifies its attacks in a number of cities in Ukraine.

“Like some international peers and in line with our legal and regulatory obligations, we are in the process of winding down our remaining business in Russia while we help our non-Russian multinational clients in reducing their operations,” Deutsche Bank said in a statement posted on its website.

While condemning the attack on Ukraine, the bank said “there won’t be any new business in Russia”.

A number of global businesses operating in different sectors including food, automotive, banking and oil and gas have announced plans to move out of Russia as conflict continues with Ukraine. These include McDonald’s and Coca-Cola, as well as US banks JP Morgan and Goldman Sachs, among others. Japanese car makers Toyota and Honda also said they are pulling out of Russia.

Earlier this month, US oil giant ExxonMobil said it will cease operations in Russia and refrain from making new investments in the country. British energy company BP, Norway’s oil company Equinor and Shell also said they will end their operations in the country.

Russia’s economy has taken a massive hit after the US and its allies took punitive actions against Moscow after its military offensive in Ukraine. Russian companies and oligarchs in President Vladimir Putin's inner circle have been put under sanctions and their assets were frozen by western countries.

The US and UK have banned the import of Russian crude while Europe, which imports more than 40 per cent of its natural gas and 30 per cent of its oil from Russia, has pledged to reduce its reliance on Moscow for its energy needs.

The International Energy Agency has tabled a 10-point initiative for the EU to reduce its reliance on Russian natural gas.

US asset manager BlackRock has also been hit by a $17 billion loss on its Russian securities holdings due to the military offensive in Ukraine, The Financial Times reported.