The green light to resume operations in US dollars has been granted to TradeXBank, the successor bank of Russia’s Sberbank (Schweiz) AG. This decision comes after the US Treasury Department’s Office of Foreign Assets Control (Ofac) removed Sberbank from its sanctions list for Russia.
Following the Russian attack on Ukraine in February 2022, Sberbank was sanctioned by the US, leading to implications for its subsidiary bank in Switzerland. The Swiss bank specialized in trading raw materials like energy, agricultural products, fertilizers, and metals and was eventually sold to the Geneva-based investment company m3 Groupe Holding SA under supervision from Swiss Financial Market Supervisory Authority (Finma). The bank was rebranded as TradeXBank and continued to operate in European, Middle Eastern, and African markets while serving medium-sized companies in the raw materials trading sector.
Despite being sold, some US sanctions remained in place, preventing TradeXBank from conducting transactions in US dollars. This limitation forced the bank to rely on euros and Swiss francs for transactions, making it challenging for the bank and its customers. However, TradeXBank managed to stay profitable and retain its loyal clientele despite these obstacles.
Getting TradeXBank off the sanctions list was a complex process that required cooperation with law firms in Washington to demonstrate independence from its Russian parent. With this removal of sanctions, TradeXBank can now resume operations in US dollars. The growth prospects of the bank are expected to improve with this development. A significant portion of its staff from Sberbank days remains with a focus on serving clients in the raw materials trading industry.
The successful transition from Sberbank to TradeXBank represents a significant milestone for the bank’s future operation as an independent entity globally.