Fallout on global finance: ECB warns on Sberbank; Russian issuers dropped By Reuters

2/2© Reuters. FILE PHOTO: A Deutsche Bank logo in Frankfurt, Germany June 9, 2015. REUTERS/Ralph Orlowski/File Photo2/2

By Tom Sims

FRANKFURT (Reuters) -In an indication of the fallout of a fresh round of sanctions, the European Central Bank on Monday warned that Sberbank Europe, a unit of Russia's Sberbank, and two other subsidiaries under its watch "are failing or likely to fail".

The ECB said it was "owing to a deterioration of their liquidity situation", while Austria's Financial Market Authority said it imposed a moratorium on Sberbank Europe, which is based in the country.

Deutsche Boerse (DE:DB1Gn), the German stock exchange operator, said that it was suspending from trading a number of securities from Russian issuers with immediate effect.

European banks and other financial firms were also set to open lower on Monday after sanctions and other measures in retaliation for Russia's invasion of Ukraine upended the way they do business.

Banks and their lawyers have been scrambling to discern the impact of a fresh wave of sanctions and the banishment of big Russian banks from the main global payments system SWIFT on their businesses.

Germany's Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) were both indicated to open more than 4% lower on Monday.

"We support the decisions of the German government and its allies and will consistently implement the sanctions," Deutsche Bank said in a statement.

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!