The top lender of India will not process any transactions involving Russian entities subject to international sanctions imposed on Russia after its invasion of Ukraine.
SBI urged to clients the extra precautions while handling any transactions related to sanctioned countries. SBI also sought information from Indian oil companies about their exposure to Russia including stakes in Russian assets, funds received from Russia in the previous year and lenders involved in routing these transactions.
A senior SBI executive said that, “We have a significant international presence and we need to comply with US and EU regulations as we are present in those jurisdictions and we cannot be seen as not adhering to these rules.”
One of India’s top refiners Indian Oil Corporation said that it would no longer accept cargoes of Russian crude and Kazakh CPC Blend cargoes on a free on board (FOB) basis due to insurance risk. Indian fertilizer companies also deal extensively with Russia for imports of crop nutrients.
The invasion which Moscow calls a special operation and the biggest assault on an European state since World War Two was met with widespread condemnation and an array of sanctions. Many major Indian corporate houses have deep links with the state-controlled lender which has a large network of overseas branches.
