Germany has emerged as the main roadblock to broaden European Union sanctions against Russia by targeting the country’s biggest bank and its energy sector.
Berlin is the leading power resisting efforts to add Sberbank PJSC to the list of Russian financial institutions cut off from Swift — the bank messaging system behind much of global trade — according to multiple diplomats familiar with the matter and documents seen by Bloomberg.
Sberbank, which holds about half of Russian retail deposits, was excluded from the
Documents show that Germany has repeatedly urged caution over the move during diplomatic meetings that have taken place in recent days, including among ministers. Chancellor Olaf Scholz has also come out publicly, calling for restraint on sanctions that could impact energy.
He said this week that he
Germany's stance risks creating a split in a key aspect of allies’ efforts to punish the Kremlin over its war on Ukraine. President Biden announced on Tuesday that the U.S. will
After Germany’s
"Germany has done a heroic deed? No, you are doing too little,” Ukraine’s Foreign Minister Dmytro Kuleba wrote in a
German officials are aware that pressure could increase to target energy supplies, but are cautious about escalating tensions at the moment and see that position supported by other member states, according to people familiar with the government’s thinking.
Finance Minister Christian Lindner has said discussions on additional financial sanctions are ongoing and nothing can be ruled out.
One of the EU diplomats said that other major western European governments, including Italy, would align behind the Swift move if there was a united position. Senior EU officials also support the measure, one of the people said.
Another official said that technical work on Sberbank and SWIFT was ongoing. Gazprombank is another entity that has so far been exempt from the measure.
Germany has also raised concerns over advanced proposals to restrict access to ports, arguing that the measure could hit trade in goods that haven’t been sanctioned, according to EU diplomats and one of the documents.
Germany and others are also opposed to the EU following the U.S. and the U.K. in banning oil imports from Russia. European nations rely more heavily on Russian fuels than the U.S. and governments are concerned about the impact on businesses and consumers already buckling under surging prices.
Oil continued its rally
As part of a
French Finance Minister Bruno Le Maire noted this week that the initial decision to exclude some Russian banks from SWIFT was agreed by all 27 EU member states, taking into account varying levels of dependence on Russian gas.
As the current holder of the presidency of the EU, France is acting as a mediator and hasn’t publicly taken a stance.
While Sberbank and the Russian Central Bank were initially spared, “all options are on the table,” he
— With assistance from John Follain, Ania Nussbaum, Jorge Valero, Natalia Drozdiak, Nikos Chrysoloras and Birgit Jennen.