Closure of a Russian bank in the UAE due to US sanctions
MTS Bank, which had obtained a license to operate in the UAE last year, was one of about 200 entities and individuals that were sanctioned by the US last month, coinciding with the first anniversary of Russia’s attack on Ukraine.
The Central Bank of the United Arab Emirates announced today, Friday, that it has decided to revoke the license of MTS Bank and suspend its branch in Abu Dhabi for six months.
It is said that this decision has been made following an assessment of the bank’s current situation and the associated risks of sanctions.
The Central Bank of the United Arab Emirates states that during the six-month period of the closure of this Russian bank, opening new accounts and conducting any financial transactions, except for settling previous commitments, will be prohibited.
The United Arab Emirates government has taken a relatively neutral position on the issue of Russia’s attack on Ukraine, and after the attack, thousands of Russians relocated to the United Arab Emirates.