SBI will not do any transaction with Russian entities

State Bank of India has closed the processing of transactions with Russian entities that were approved by Western countries for Moscow's attack on Ukraine. Sources said that SBI has issued a circular to implement this, as it fears that any transaction with entities or sectors will get sanctioned.

Any transaction involving entities, banks, ports or ships on the US, EU or UN sanctions list will not be processed irrespective of the currency of the transaction. Sources said that payments to such entities have to be processed through other mechanisms than through banking channels.

SBI operates a JV in Moscow called Commercial Indo Bank LLC, where Canara Bank is another partner with 40 per cent stake. The bank did not respond to e-mails on the matter. Russia is one of the largest suppliers of defense products and equipment to India, mostly under government-to-government contracts.