Japanese Banks To Suspend Dollar Transactions With Russia

S Sahoo March 26, 2022

68 1 minute read

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Tokyo, March 26: Japanese leading banks, including Mitsubishi UFJ, Sumitomo Mitsui and Mizuho, will suspend dollar transactions with Russia’s Sberbank in connection with US sanctions imposed on the country due to its special military operation in Ukraine, the Kyodo news agency reported on Saturday, citing sources close to the matter.

According to the news agency, the three Japanese financial institutions make dollar deals with Sberbank through US correspondent banks. Given Washington’s decision to ban transactions involving Sberbank since March 26, any operations between the Japanese banks and the Russian one become impossible, the media reported.

It is unclear whether Japanese financial institutions will halt transactions with Sberbank in other currencies, Kyodo said, but some banks, such as Mitsubishi UFJ, have a policy of only dealing in dollars. On February 24, Russia began a military operation in Ukraine. UNI/SPUTNIK