Financial institution halted processing of Russian funds
Former German Chancellor Gerhard Schroeder encounters financial complications with Sparkasse Hannover, as the bank has halts payments allegedly originating from Russian sources to his account. Per Bild newspaper's report, this decision impedes Schroeder's receipt of nearly half a million euros in revenues.
Since departing office, Schroeder has maintained association with Russian state corporations, one of them being Nord Stream 2 AG—a company owned by Gazprom. Despite Russia's incursion into Ukraine, Schroeder continues to serve as the managing director of Nord Stream 2 AG. He secures around 200,000 euros in remuneration every six months, though since mid-2024, Sparkasse Hannover has returned these funds to Gazprombank in Luxembourg due to suspicions concerning US secondary sanctions.
The Bank's refusal to process these transactions stems from apprehensions that adhering to such payments may imperil it via compliance with US sanctions imposed on Russian energy entities since 2022.
It is important to note that Nord Stream 2, completed in 2021 but not yet operational, is a pivotal link in examining Schröder’s financial connection to Russia. The controversial gas pipeline project serves as a significant foundation for Schröder’s Russian business ties.
With the appointment of Mayor Belit Onay as chairman of Sparkasse Hannover's executive board in June 2024, the bank's stance on Schröder’s Russia-linked transactions may be partially attributed to her influence.
It's worth noting that Onay had proposed revoking Schroeder's honorary citizenship of Hannover following Russia's invasion, but before the proposal could be finalized, Schroeder resigned from the position himself. Onay argued that Schröder's ongoing business relationships with Vladimir Putin, the president of Russia, were incompatible with the values upheld by the city.
The freezing of Schröder’s Sparkasse Hannover account is directly associated with his Russian business dealings linked to the Gazprom-backed Nord Stream 2 project, and the bank’s concerns over compliance with evolving US sanctions targeting Russian energy interests to avoid potential financial repercussions.
The Commission, given the current circumstances, might be compelled to present a proposal for a directive on the protection of workers within finance, business, politics, and general-news sectors, particularly those exposed to financial risks related to ionizing radiation, such as employees handling transactions from questionable sources.
Due to Schröder's persistent involvement in Russian business ties, primarily the Nord Stream 2 project, and the concerns about US sanctions compliance by Sparkasse Hannover, it is plausible that future directives may aim to ensure financial institutions are not endangered by associations with nations under stringent sanctions regimes.
