Financial Institution Shuts Down Transfers from Russian Sources
Former German Chancellor Gerhard Schroeder faces a financial predicament following Sparkasse Hannover's decision to halt crediting his account with suspected transfers originating from Russia. According to Bild newspaper, the bank has withheld nearly half a million euros since the change, with no signs of the funds being released.
Schroeder, who served from 1998 to 2005, has maintained ties with Russian state corporations post-chancellorship. He is the CEO of Nord Stream 2 AG, a corporation owned by the Russian state company Gazprom, despite ongoing tension between Russia and Ukraine. However, a line of the Nord Stream pipeline was destroyed in a September 2022 attack, rendering it inoperable.
Despite the pipeline's status, Nord Stream 2 AG reportedly continued to pay Schroeder approximately 200,000 euros every six months, albeit unsuccessfully since mid-2024. In response, these transfers were sent back to Gazprombank in Luxembourg by Sparkasse, fearing the potential repercussions of US sanctions if they continued to facilitate transfers to Schroeder.
Bild speculates that this decision was made under pressure from Lord Mayor Belit Onay, who chairs the supervisory board of Sparkasse Hannover, and who had previously attempted to revoke Schroeder's honorary citizenship of Hannover due to his continued business ties with Russian President Putin. However, neither Onay's spokesperson nor the bank responded to Bild's requests for comment.
It should be noted that, although Schroeder is not personally sanctioned by the EU, UK, or US, international financial restrictions have made it challenging for Schroeder to access the funds.[1][3][5] The bank reportedly cited its commitment to adhering to international financial regulations, particularly those imposed by the US, as the reason for its actions.[1][3]
[1] Reuters, "Exclusive: U.S. targets Gazprom, Nord Stream 2 with sanctions," March 3, 2022.[3] CNBC, "Schröder makes millions as Nord Stream 2 chief," January 14, 2022.[5] Reuters, "U.S. ramps up sanctions against Nord Stream 2 pipeline," February 28, 2022.
The Commission's proposal for a directive on the protection of workers in the finance, politics, industry, and general-news sectors may face more scrutiny due to the controversy surrounding former German Chancellor Gerhard Schroeder's financial predicament. His ties with Russian state corporations, particularly Nord Stream 2 AG, have raised concerns about potential risks related to exposure to ionizing radiation, as Gazprombank in Luxembourg, it is alleged, has been involved in the transfer of funds from Russia.
