EU Sanctions on Russian Banks Would Stifle Investment, Lending | News | The Moscow Times

EU Sanctions on Russian Banks Would Stifle Investment, Lending | News | The Moscow Times:



"Russia's state-controlled banks would have to turn to the state, domestic borrowers or new regions such as Asia if EU sanctions shut off investment, hurting their ability to lend to local businesses and further damaging the country's fragile economy.



Under measures being considered by European Union governments in response to the Ukraine crisis, European investors would be banned from buying new debt or shares of banks owned 50 percent or more by the state.



While the Russian government would step in to meet banks' funding needs, longer-term financing could be hit, hurting the banks' ability to finance business projects and crimping the country's growth potential."



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