German financial giant defends decision to stay in Russia

German financial giant defends decision to stay in Russia

One of the world’s leading financial service providers, Deutsche Bank, said on Thursday it is not “practical” to close its Russian business, despite similar moves by major corporations seeking to distance themselves from the country over its military offensive in Ukraine. The announcement comes as many Western companies pause their Russian operations.

“We’re there to support our clients,” James von Moltke, the bank’s chief financial officer, told CNBC. “And so, for practical purposes, that isn’t an option that’s available to us. Nor would it be the right thing to do in terms of managing those client relationships and helping them to manage their situation,” he said.

Von Moltke added that the bank would be willing to reconsider its position should the situation escalate further and its clients in Russia, which are mostly multinationals, cease their operations in the country.

“Of course, we’ll need to look at how this situation evolves and consider our footprint in Russia as we gain some greater clarity as to the direction of travel here,” he said. “As that [client presence] diminishes, so too will our presence in Moscow.”

Von Moltke said that Deutsche had managed the market risk “quite successfully” in the war’s early days, and noted that it was working closely with clients to manage their response. According to him, the bank’s capital in its Moscow subsidiary had been “fully hedged” to manage currency risks.

“The market will always react to a crisis and the scenarios that unfold and look at the downside scenarios first. I think then, over time, we’re able to provide more information, we’re able to talk about our trajectory,” he said.

On Thursday, Goldman Sachs said it was winding down its business in Russia, while earlier on Monday HSBC told staff to start ceasing their dealings with Russian banks.

For more stories on economy & finance visit RT's business section

Source: www.rt.com

The last notes - Экономика

most read news

#Экономика

Germany may face shortages of such staples as toilet paper and cardboard if Russian gas supply dwindles in the coming months, German outlet Zeit Online reported on Wednesday.Operating paper plants may
подробнее...

Pay rises in Britain could fall behind inflation by almost 8% later this year, which will be the biggest fall in real wages for 100 years, the Trades Union Congress (TUC) said in a report published on
подробнее...

The EU is planning to increase liquefied natural gas (LNG) imports from Nigeria amid concerns that supply from Russia may be cut, according to the deputy director general of the European Commission’s
подробнее...

The business climate has substantially worsened in Germany, with industries feeling increasingly concerned about the coming months, according to a survey by a German think tank released on Monday.
подробнее...

Twitter operated at a loss in the second quarter and suffered a decline in revenue from a year earlier, reflecting struggles that the company blamed partly on its pending sale to billionaire Elon
подробнее...

The Chinese currency the yuan outperformed the euro by trading volume on the Moscow Exchange (MOEX) for the first time on record, trading data from Friday shows.According to the data, the trading
подробнее...

Japanese companies are no in a hurry to quit the Russian market, amid fears of being unable to return and having to find new suppliers, the Japan Times reported this week, citing a survey from the
подробнее...

The EU will allow transactions needed for Russian state-owned companies to sell oil to third countries, the EU Council said in a statement on Thursday.“With a view to avoid any potential negative
подробнее...

The Ukrainian government has moved to delay payments on foreign debt for two years, the country’s media reported on Wednesday. The restructuring will have to be approved by the creditors first, the
подробнее...

Ukraine’s state-run energy company Naftogaz has defaulted on its foreign debt, the firm announced on Tuesday.Naftogaz was unable to make payments on Eurobonds before a grace period expired, the
подробнее...

The German government and energy major Uniper are reportedly nearing an agreement under which the state will inject more than €5 billion ($5.1bn) into the business. The total commitment is likely to
подробнее...

The Russian Finance Ministry has announced a return to the public debt market by issuing a limited amount of OFZs, ruble-denominated sovereign bonds, in September, Deputy Finance Minister Timur
подробнее...

China’s C919 narrow-body jet, the country’s first domestically designed commercial passenger aircraft, is nearing certification, having successfully passed test-flight tasks, state-owned manufacturer
подробнее...

The EU has blocked a proposal to impose sanctions on Russian titanium producer VSMPO-AVISMA, the Wall Street Journal (WSJ) reported on Thursday.According to the report, the decision was made after
подробнее...

Cargo shipments via Russia’s Northern Sea Route in the first half of this year were 5% higher than in the same period of 2021, Russian Deputy Prime Minister Alexander Novak said on Monday.“In 2021,
подробнее...

Inflation in Britain accelerated at a faster pace than expected in June and hit 9.4% year-on-year, the highest increase since February 1982, according to data released by the Office for National
подробнее...

EU energy ministers have agreed on an unprecedented plan that will see member states voluntarily slash their gas consumption by 15% from August until next spring. The deal does come with exemptions
подробнее...

Creditors of Ukraine’s state-owned energy company Naftogaz have rejected the firm’s request for a two-year debt payment freeze, the country’s media reported on Monday.Naftogaz made the proposal
подробнее...