MADRID (Reuters) – Banks and supervisors are concerned about implementing sanctions against Russian oligarchs in the wake of the invasion of Ukraine as they vary in scope and in who they target across different jurisdictions, Bank of Spain Director General for Supervision Mercedes Olano said on Thursday.
“For internationally active banks it’s a puzzle because sanctions are not the same in Europe as in the U.S. or in Britain or Japan,” she said, adding that talks were being held to clarify how financial institutions should act.
Last week, the European Central Bank said euro zone banks’ direct exposure to Russia was relatively minor but sanctions could still reverberate through the financial system through volatility in energy and commodity prices.
Olano said Spanish banks should be less affected by the implementation of sanctions due to their lower direct exposure to Russian credit.
Spanish banks in general rank among the less exposed to Russian credit, with Spain’s central bank estimating their credit risk at just above 700 million euros.
(Reporting by Jesús Aguado; Editing by Nathan Allen)
