New Delhi: State Bank of India (SBI), country’s prime public sector bank, has decided not to process any transactions involving Russian entities due to global sanctions, according to a report by Reuters quoting sources.
The Western nations have imposed strict sanctions on Russia after its invasion of Ukraine.
In a letter sent by SBI to certain clients said, “No transactions involving entities, banks, ports or vessels appearing” on a US, European Union or United Nations sanctions list shall be processed irrespective of the currency of the transaction.
The bank, however, did not immediately respond to emails or calls seeking comment on the matter.
A senior SBI executive said, “We have a significant international presence and we need to comply with US and EU regulations as we are present in those jurisdictions and we cannot be seen as not adhering to these rules.”
The invasion, which Moscow calls a “special operation” and which is the biggest assault on a European state since World War Two, was met with widespread condemnation and an array of sanctions.
India, which has deep trade and defence partnership with Russia, has so far not publicly condemned its long-standing ally, but has called for an end to violence and for diplomacy and dialogue to resolve the conflict.
SBI in the letter to clients also urged “extra precautions” while handling any transactions related to sanctioned countries.
Several major Indian corporate houses have deep links with the state-controlled lender, which has a large network of overseas branches.
SBI has also sought information from Indian oil companies about their exposure to Russia, including stakes in Russian assets, funds received from Russia in the last year, and lenders involved in routing these transactions, according to two senior energy industry sources.
Indian Oil Corporation, one of the country’s top refiners, said on Monday it would no longer accept cargoes of Russian crude and Kazakh CPC Blend cargoes on a free on board (FOB) basis because of insurance risk.
Apart from oil firms, Indian fertiliser companies also deal extensively with Russia for imports of crop nutrients.