The EU move, part of its 21st package of sanctions, will take effect on August 13, and also includes two local firms
The EU has targeted Indian entities of two of Russia’s largest banks as part of its 21st sanctions package.
The latest round of sanctions targets the Indian entities of VTB and Sberbank, as well as two local firms, according to a statement by the EU Council published in the Official Journal of the European Union.
The restrictions will come into force on August 13.
The Indian firms included in the latest sanctions package are Falcon Toolings, and Zepto Microwave and Chip Devices Assembly.
Responding to the development, SberIndia said that its operations continue in full compliance with Russian and Indian laws.
“Our clients’ financial transactions are processed as usual, without delays,” it said in response to a question by RT India. “The bank continues to act as the primary payment hub between the two countries, facilitating trade and mutual investment.”
VTB India said that its Indian entity is integrated into the national payment systems of both Russia and India, adding, “closed financial messaging channels are used for settlements.”
This ensures uninterrupted transactions in national currencies for both corporate clients and individuals, according to VTB.
The EU’s latest round of sanctions, aimed at Russia over its conflict with Ukraine, has 218 individual listings, the biggest number in the last four years. The list includes 94 banks and 33 Russian credit and financial institutions.
The trade bloc was forced to approve a watered-down package, including a Greek-backed exemption that allows EU companies to transport Russian LNG.
Greece, which has the world’s largest independent cross-trade LNG fleet by capacity, warned that banning EU shipping companies from transporting Russian LNG would harm Greek shipping interests.
A Baltic-backed proposal to ban Russians who served in the military after the escalation of the Ukraine conflict from entering the bloc was scaled back after France, Italy, and Greece fought against it.
