Sberbank Drops as EU Sanctions on Russian Lenders Loom - Bloomberg

Sberbank Drops as EU Sanctions on Russian Lenders Loom - Bloomberg:



"OAO Sberbank (SBRCY), which has lost the most market value among the world’s major lenders this year, fell in New York trading as representatives of the European Union meet to discuss sanctions that may target Russian banks. 




American depositary receipts of the country’s biggest bank, which is controlled by the government and holds about half of Russia’s deposits, slumped 3 percent to $8.45 yesterday to extend this year’s plunge to 33 percent. The Bloomberg Russia-US Equity Index of the most-traded Russian shares on U.S. exchanges retreated 1.2 percent to 84.14, heading for the biggest monthly drop since January.



EU ambassadors will meet again today to weigh banning Russia’s state-owned lenders from its capital markets after the U.S. enacted another round of penalties against the former Soviet republic over the fighting in Ukraine. BCS Financial Group cut its price estimate on Sberbank by about 15 percent yesterday, saying reduced international funding and a weaker economy will lead to lower profitability."



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