The bank had been one of the last remaining channels for financing trade flows between Russia and Switzerland because other major Russian banks are subject to sanctions over Russia’s invasion of Ukraine.
“The decision is the result of an in-depth strategy analysis and is being taken in close consultation with the Swiss Financial Market Supervisory Authority [FINMA],” Gazprombank’s board chairman, Ivan Dun, said in a statement.
Existing business relationships will be wound down or referred to external banking partners in the coming months, Gazprombank said.
The Russian bank had launched a strategic review in summer and a search for investors to buy the Zurich-based business. The bank had been operating in Switzerland since 1966 and under the Gazprombank (Switzerland) name since 2009.
Its Swiss business, which employs about 80 people, is mainly active in trade and export financing, including helping Swiss industrial groups finance exports to Eastern Europe. It also financed the extraction, transport and processing of raw materials from Russia to Western Europe for commodity traders.
Gazprombank has yet to feel the full force of Western sanctions following Russia’s invasion of Ukraine. But some European countries have been pushing for the bank to be expelled from the international payment system SWIFT in the next round of EU sanctions. There are reports that the US could also target Gazprombank with full blocking sanctions.
Another Russian bank, Sberbank, recently made the headlines in Switzerland. The Swiss branch of Russia’s Sberbank was sold to the Geneva-based m3 Groupe Holding company, freeing the bank from intensive supervision by the Swiss financial regulator, it was reported last month.
More
More
Russian Gazprombank considers sale of Swiss business
This content was published on
Gazprombank has announced it may sell its Swiss banking branch as it explores “potential strategic options”.
High-net-worth individuals prioritise well-being over material possessions
This content was published on
The priorities of wealthy private individuals have shifted against the backdrop of ongoing geopolitical tensions and trade disputes. While spending on luxury goods is declining, demand for travel and experiences is unabated.
Swiss researchers sequence genome of 1918 Spanish flu virus
This content was published on
Researchers from the Universities of Basel and Zurich (UZH) have sequenced the genome of the Spanish flu virus, thanks to a sample taken from an 18-year-old Swiss boy who died in the city on the Limmat in 1918, when the pandemic spread around the world.
Swiss martyr beatified in Barcelona by Catholic Church
This content was published on
François-Benjamin May (1870-1909), a member of the Marist Brothers congregation, has been recognised as a 'blessed' by the Catholic Church.
Prevention and tech could help save billions on Swiss healthcare costs, says Deloitte
This content was published on
By focusing on prevention and technology, it would be possible to reduce Switzerland's healthcare bill by CHF30 billion a year by 2040, according to Deloitte Switzerland.
Environment director warns of increasing climate-related risks in Switzerland
This content was published on
The director of the Swiss Federal Office for the Environment (FOEN) has warned of increasing climate-related risks in Switzerland in an interview with SonntagsBlick on Sunday.
Gotthard traffic queue hits 11km at start of holiday season
This content was published on
The start of the summer holidays saw a long traffic jam in front of the Gotthard tunnel on Saturday. Traffic jams between Erstfeld and Göschenen in canton Uri were up to 11 kilometres long early in the morning.
Leonid Nevzlin: ‘Swiss Banks must choose – money or decency’
This content was published on
Former energy magnate Leonid Nevzlin on western sanctions against Russia and Switzerland's role in the war against Ukraine.
Russia’s Sberbank Switzerland changes hands to new Swiss owner
This content was published on
The Swiss branch of Russia’s Sberbank is sold to Swiss m3 Groupe Holding company, and will change its name to TradeXBank.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.