Two banks halt commodity trade finance deals with Russia

Feb 27 (Reuters) – Societe Generale SA (SOGN.PA) and Credit Suisse Group AG (CSGN.S) have halted the finance of commodities trading from Russia, Bloomberg News reported on Sunday citing people familiar with the matter.

Read Meta restricts Russia state media accounts at Ukraine request

The two banks, key financiers to commodity trade houses, are no longer providing the money needed to move raw materials such as metals and oil from Russia, the report said.

Besides, Dutch banking firms ING Groep NV (INGA.AS) and Rabobank are restricting lending to deals involving movement of commodities from Russia and Ukraine, the report added.

Credit Suisse and Societe Generale declined to comment. ING Groep and Rabobank did not immediately respond to a request for comment.

The United States, Britain, Europe and Canada on Saturday moved to block Russia’s access to the SWIFT international payment system as part of another round of sanctions against Moscow as it continues its assault against Ukraine.

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Russia produces 10% of global oil and supplies 40% of Europe’s gas. It is the world’s largest grains and fertilisers exporter, top palladium and nickel producer, third-largest exporter of coal and steel, and fifth-largest wood exporter. read more

Societe Generale, Credit Suisse halt Russian commodity trade finance deals -Bloomberg News  ReutersSociete Generale, Credit Suisse halt Russian commodity trade finance deals -Bloomberg News  ReutersRead More“when:24h allinurl:reuters.com” – Google News

Also read EU to cut off Russia from SWIFT?

While some nations (UK, Poland, and Lithuania for example) are pushing hard for Russia to be cut off from SWIFT – the international electronic payment-messaging system – many others are anxious of executing the so-called ‘nuclear option’ for fear of the potential blowback.

“The EU isn’t on board with removing Russia from SWIFT for one thing because the EU isn’t on board with letting go of Russian energy,” said Erik Meyersson Read more.