Bank Ceasing Flows of Russian Funds (or alternatively: Russian Money Taps Shut Down by Bank)
former German Chancellor Gerhard Schröder has experienced financial constraints with Sparkasse Hannover. According to news reports, the bank has halted crediting his account with transfer payments suspected to originate from Russia, resulting in nearly half a million euros in missed funds.
Serving as Chancellor from 1998 to 2005, Schröder subsequently joined Russian state corporations, remaining CEO of Nord Stream 2 AG, a Swiss subsidiary of Russian energy giant Gazprom. Despite the pipeline never becoming operational, the company reportedly pays Schröder approximately 200,000 euros every six months, transfers which have not reached him since mid-2024. Sparkasse Hannover sent these payments back to Gazprombank in Luxembourg due to fears of violating international financial restrictions and subsequent potential US sanctions.
The decision to halt crediting Schröder's account may have stemmed from the appointment of Belit Onay, the Green Party mayor of Hannover, as chairman of Sparkasse Hannover's supervisory board in June. Neither Onay's spokesman nor the bank responded to requests for comment.
This financial predicament highlights broader trends among financial institutions to minimize exposure to Russian funds amidst ongoing geopolitical tensions and sanctions enforcement. Schröder, who has continued business ties with Russian President Vladimir Putin, faced backlash following his country's invasion of Ukraine. In response, the city of Hannover considered revoking Schröder's honorary citizenship, a decision that never materialized after Schröder returned his honorary citizenship himself.
Source: ntv.de, hvo
- Gerhard Schröder
- Vladimir Putin
- Attack on Ukraine
- Hanover
- Gerhard Schröder's business ties with Russian President Vladimir Putin have faced backlash, following Russia's attack on Ukraine.
- The financial institution, Sparkasse Hannover, is among those minimizing exposure to Russian funds, amidst ongoing geopolitical tensions and sanctions enforcement.
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