Two sanctioned Russian banks turn governmental aid

7 August 2014 16:07
(QHA) -

Two major state-controlled Russian banks have turned to the government for nearly $4 billion to shore them up after they were excluded from Western capital markets last month as punishment for Russia's support of Ukraine's separatist militias, The Moscow Times reports.

Gazprombank and Rosselkhozbank, Russia's 3rd and 5th largest lenders, have requested the aid, business daily Vedomosti reported Thursday, citing unidentified state officials and bankers.

The Central Bank in late July promised to support sanctioned banks if necessary after the European Union and United States imposed their harshest sanctions yet on Russia over the crisis in Ukraine.

The EU's sanctions barred four of Russia's five largest banks — Sberbank, Gazprombank, Rosselkhozbank and VTB from buying or selling new bonds and equity with a maturity period of longer than 90 days on EU markets.