Sovcombank is one of the 13 systemically important banks in Russia. Although it faces restrictions due to US sanctions, it is actively looking for ways to maintain its international relations: for example, it recently applied to the US Treasury Department for a special permit allowing it to contribute membership fees to the UN Climate Finance Initiative.
The Climate Policy Finance Program is linked to the United Nations Environment Program Finance Initiative (UNEP FI). However, Sovcombank's efforts are hampered by the fact that in 2022, America will exclude the financial institution from participating in the US financial system, ban trade with US organizations and freeze its assets located within the United States.
However, Sovcombank is testing possible exceptions that Washington might allow for certain types of transactions by Russian banks under sanctions. The license application submitted by Sovcombank to OFAC is currently under review. However, while evaluating the license application, there were new developments: Sovcombank reported that they had already opened an account for UN transactions. The international organization did not immediately comment on the matter.
Source: Reuters
Cover image source: Getty Images
