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Russia's largest lender, Sberbank, has shown interest in opening a branch in Bangladesh to facilitate bilateral trade and introduce alternative dollar transactions, which is currently under negotiation.
Sberbank Rossii PAO, a leading global financial institution facing US sanctions, has had two meetings with Bangladesh Bank. The first round of talks occurred before Eid-ul-Azha, with a bank delegation visiting Dhaka, and the second meeting was held virtually on Jul 6.
Earlier, the bank expressed its desire to open a branch here within a year and sought cooperation from Bangladesh Bank for the arrangements in a letter by Anatoly Popov, deputy chairman of the Russian bank’s executive board.
However, Bangladesh Bank spokesman Mezbaul Haque, an executive director, declined comment on the discussion and application, reports bdnews24.com.
Sberbank is exploring all possibilities and formats for providing banking services at the request of Russian clients doing business with companies in Bangladesh, the public relations department of Sberbank said in an emailed response to bdnews24.com, quoting Popov.
Bangladesh Bank officials with knowledge of the matter clarified that no policy decision had been made during the two initial meetings. The bank had inquired about the legal requirements and necessary documentation for opening the branch.
A senior official said the government is involved in the decision-making process for foreign banks opening branches. They were advised to seek guidance and approvals from the Ministry of Foreign Affairs while following banking policies, he said.
Sberbank was targeted with sweeping Western sanctions soon after Moscow invaded Ukraine in February 2022, exiting the majority of its European operations with the sale of its Austrian subsidiary in June, Reuters reported.
Like many Russian companies, Sberbank has been pivoting towards Asia, where a few countries have joined in with sanctions against Moscow, as it looks to find new trading partners, it said.