TradeXBank, the successor bank of Russia’s Sberbank (Schweiz) AG, has been granted permission by the US Treasury Department’s Office of Foreign Assets Control (Ofac) to resume operations in US dollars. This decision comes after Ofac removed Sberbank from its sanctions list for Russia following a lengthy and complex process involving cooperation with law firms in Washington to demonstrate the bank’s independence from its Russian parent.
Following the Russian attack on Ukraine in February 2022, Sberbank was sanctioned by the US, leading to implications for its subsidiary bank in Switzerland. Specializing in trading raw materials like energy, agricultural products, fertilizers, and metals, the Swiss bank was eventually sold to the Geneva-based investment company m3 Groupe Holding SA under supervision from the Swiss Financial Market Supervisory Authority (Finma). The bank was rebranded as TradeXBank and continued to operate in European, Middle Eastern, and African markets while serving medium-sized companies in the raw materials trading sector.
Despite being sold, some US sanctions remained in place, preventing TradeXBank from conducting transactions in US dollars. This limitation forced the bank to rely on euros and Swiss francs for transactions. However, despite these challenges, TradeXBank managed to stay profitable and retain its loyal clientele.
The removal of sanctions has now allowed TradeXBank to resume operations in US dollars. This is expected to boost its growth prospects as it is able to access new markets and opportunities that were previously unavailable due to sanctions restrictions. The bank has retained a significant portion of its staff from its Sberbank days with a focus on serving clients in the raw materials trading industry.
Overall, this successful transition from Sberbank to TradeXBank marks a significant milestone for the bank as it is now able to operate freely within international financial landscape once again without any limitations imposed by U
