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DUBAI, March 31 (Reuters) – The United Arab Emirates’ central bank said on Friday it would revoke the license granted last year to Russia’s MTS Bank, which was sanctioned by Britain and the United States in February.
Operations at the bank’s licensed UAE branch in the emirate of Abu Dhabi will end within six months under the supervision of the central bank.
“The decision was taken after considering the options available regarding the new status of MTS Bank and taking into account the sanctions risks associated with the bank,” said a statement from the UAE Central Bank.
During the liquidation process, branches will not be allowed to open new accounts or carry out transactions other than to liquidate previous obligations, for which they will be allowed to use the central bank’s payment system.
The UAE, a member of the OPEC+ oil alliance that includes Russia, has maintained good relations with Moscow despite Western pressure to help isolate Russia over its invasion of Ukraine. It does not comply with global sanctions imposed on Moscow.
Since the conflict in Ukraine erupted, large numbers of Russians have sought safe haven in the UAE. U.S. officials have visited the UAE to discuss with regulators, including the central bank, the importance of combating sanctions evasion.
MTS Bank, the fintech arm of Mobile TeleSystems, Russia’s largest mobile operator (MTSS.MM)part of a broader sanctions package targeting 200 entities and individuals announced in February on the first anniversary of Russia’s invasion of Ukraine.
MTS had no immediate comment.
Russian conglomerate Sistema (AFKS.MM) Holds a 42.09% stake in MTS. Russian billionaire Vladimir Yevtushenkov relinquished formal shareholder control of Sistema after Britain imposed sanctions on him last year, transferring a 10% stake to his son.
Written by Lisa Barrington and Hadeel Sayegh Edited by Sharon Singleton and David Goodman
Our standards: Thomson Reuters Trust Principles.
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