Bank Stopping Inflow of Russian Funds (Rouble Transactions Discontinued)
Sparkasse Hannover Halts Transfers to Schroeder's Account Linked to Russia
Former Chancellor Gerhard Schroeder, who has been tied to Russia, is experiencing difficulties with Sparkasse Hannover. The bank is no longer crediting Schroeder's account with transfers suspected of originating from Russia, according to a report by Bild, potentially causing him to miss out on approximately half a million euros.
Schroeder served as Chancellor from 1998 to 2005 and subsequently took on positions with Russian state corporations, which he held even after Russia's invasion of Ukraine. He remains the CEO of Nord Stream 2 AG, a company owned by the Russian state corporation Gazprom. Despite this connection, Nord Stream 2 AG is yet to begin operations, and one of its lines was damaged in the September 2022 attack on the Nord Stream pipelines.
The bank has allegedly halted payments to Schroeder after mid-2022, sending the transfers back to Gazprombank in Luxembourg. The decision is believed to have been made due to concerns about potential violations of international financial restrictions, particularly secondary U.S. sanctions, should the bank continue crediting Schroeder's account [1][3][4].
While the bank has not commented publicly on the matter, Bild speculates that the decision might have been influenced by Hannover's Lord Mayor Belit Onay, who chairs the supervisory board of Sparkasse since June [4]. In the past, Onay expressed intentions to revoke Schroeder's honorary citizenship of Hannover at the start of Russia's invasion. Before a decision could be made, Schroeder had already resigned from the honorary citizenship [5].
Onay remarked that Schroeder's unwillingness to draw personal consequences from the war in Ukraine made it consistent to end his honorary citizenship [5]. Ongoing business ties between Schroeder and Russian President Vladimir Putin have been deemed incompatible with the values of the city [5].
The Commission might be asked to consider a directive on the protection of workers from potential financial risks, as the latest incident involving Schroeder and Sparkasse Hannover could have far-reaching consequences for businesses and politics, especially in the context of general-news reporting on international sanctions and conflicts.
The halt in transfers to Schroeder's account could potentially lead to a discussion about the role of banks in upholding political and financial ethics, with worries about compliance with international financial regulations and the significance of such decisions in the broader scope of politics and business.
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