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Rothschild & Co.’s wealth management unit has decided to no longer accept new Russian clients amid growing sanctions against Russian entities and individuals following Moscow’s military invasion of Ukraine, reported Bloomberg.
The move is part of a precautionary move by the Paris-based bank as it fears the United States and European countries may impose sanctions on more people in the future, the news agency told sources familiar with the development.
Rothschild & Co had about 10 employees in Moscow to serve its approximately 70 Russian customers.
The company ceased consulting services in the country and transferred several of its employees to another location following the Ukraine crisis, the sources said.
A Rothschild spokeswoman declined to comment on the development when approached by the news agency.
The escalation of sanctions imposed on Russia by the United States and its allies has forced a number of American and European banks to suspend their activities in the country.
This week, the French banking group Crédit Agricole and BNP Paribas suspended operations in Russia. Crédit Agricole had previously stopped financing projects and movements of raw materials linked to Russia.
Goldman Sachs, Deutsche Bank, JPMorgan Chase, Julius Baer and Commerzbank are among other global lenders that have severed ties with the country in response to Ukrainian aggression.
This month, Citigroup said it was broadening the scope of its exit process in Russia to include more business sectors and would continue to reduce its remaining “operations and exposure” in the country.
The American banking major had closed its consumer activities in Russia in April 2021.