US lifts sanctions on former Sberbank subsidiary in Kazakhstan

The US Treasury has removed Texacabank, which Sberbank sold in September 2022, from the SDN sanctions list of the Office of Foreign Assets Control (OFAC), according to the department’s website.

Sberbank sold its Kazakh subsidiary to the Baiterek holding in early September last year. After that, the bank was renamed to Bereke Bank. The new owner submitted documents to OFAC to lift sanctions from the credit institution. The bank referred to the fact that it has changed ownership and is now wholly owned by the Baiterek holding, whose shareholder, in turn, is the government of Kazakhstan. Bereke Bank expected that the decision to lift restrictions would be made in March and they would be able to return to work with foreign exchange transactions and resume correspondent relations with foreign banks.

Since March 6 of this year, Bereke Bank has stopped issuing cash from Mir cards of Russian banks that have fallen under US sanctions, as well as accepting payments and transfers in any currency from / to Sberbank, its subsidiaries and branches. In addition, transfers by phone number to Russia are not available.

Sberbank came under US sanctions on February 24, 2022, the day the hostilities began in Ukraine. At first, softer restrictions were introduced against the bank and its assets were not frozen. The sanctions concerned correspondent accounts that were required to be closed. In addition, the United States banned its companies from any transactions involving the bank or its subsidiaries. However, already in the spring, Sberbank found itself under full blocking sanctions. Restrictive measures also affected subsidiaries, including the Kazakh "daughter". In addition, Sberbank was disconnected from the SWIFT interbank payment system.