Several large banks in the United Arab Emirates have begun limiting transactions with Russia and closing the accounts of Russian companies and individuals due to the risk of secondary Western sanctions, the news outlet Vedomosti reported on Monday, citing businessmen working in the UAE.
The sources, whose identities are not disclosed in the article, told Vedomosti that in September first-tier UAE banks, such as First Abu Dhabi Bank, Emirates NBD, and Abu Dhabi Commercial Bank, largely purged their ties to Russia. It thus became virtually impossible to carry out transactions with Russia using these banks. This happened after Russia’s Ak Bars Bank, which used to be the main channel for Russia-Emirati payments, came under US sanctions.
Second-tier institutions have allegedly so far treated Russian companies and individuals more loyally, but have demanded that these clients purchase additional banking services or put extra funds on their accounts.
The sources also complained that it has recently become next to impossible to open a new account with the country’s larger banks. Many applications from Russian residents are returned after the first compliance check.
The sources attributed the problem to sanctions. According to one businessman, his company’s account was closed after it was discovered that one of the products he was importing had appeared on a EU sanctions list. Some also said banks may be wary of a decree signed in December by US President Joe Biden enabling punitive measures against financial institutions outside US and EU jurisdictions that continue to work with Russia. The regulation specifically targets lenders that facilitate transactions related to the Russian military-industrial complex.
