On Wednesday, shares of Russia’s Sberbank plunged 95% to trade as low at a penny following the announcement that the bank was withdrawing from the European market.
Russia’s biggest lender stated that its European subsidiaries suffered “abnormal” cash outflows and expressed concern for its employees and property.
Sberbank’s European division was ordered to close by the European Central Bank. The Austrian Financial Market Authority reported Wednesday that it was “failing” or likely to fail after the invasion of Ukraine caused a run on deposits.
Recent sanctions by the U.S. and European Union against Russia’s institutions have been ratcheted up , banning key banks from the SWIFT international pay system , and restricting the Central Bank of Russia’s ability to use more than $600 million in foreign currency reserves.
Sberbank shares fell 94.24% as of London morning trade to trade at $0.01. Since the start of the year, 99.9% has been lost by the bank.
Other Russian stocks that are listed in London saw similar declines Wednesday, including Lukoil Novatek, Rosneft, and Lukoil .
Moscow’s stock markets have been closed for three consecutive day to prevent local asset losses.