Japanese Largest Banks Suspend Dollar Transactions with Sberbank

The largest banks in Japan, including Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho, have suspended dollar transactions with the Russian Sberbank since March 26, due to US sanctions, reported Kommersant, citing Kyodo.

Other banks in Japan are expected to make similar decisions.

The US has added Sberbank to its CAPTA list. As a result, US banks have been ordered to block the correspondent accounts of the bank as of March 26. Without special authorization from OFAC, American financial institutions will be unable to open and maintain correspondent accounts for Sberbank and its subsidiaries, as well as accept transactions.

It is worth noting that these sanctions were imposed in response to Russia's military operations in Ukraine, which have been ongoing since February 24.