Russia revokes banking license of American Express subsidiary
Russia’s central bank canceled the banking license of American Express Co.'s Russian subsidiary on Aug. 13, following the unit's voluntary liquidation request.
This move comes after Russian leader Vladimir Putin's May decree allowing American Express to wind down its Russian operations, which had been suspended over two years ago in response to Russia’s full-scale invasion of Ukraine.
The bank was ranked 300th in Russia's banking sector by assets. Since mid-2022, foreign banks have needed approval from Putin to exit the market or sell stakes in their Russian operations.
The bank’s Russian subsidiary submitted a liquidation request in early July, as indicated by Russia’s corporate registry, SPARK.
On March 6, 2022, American Express announced it would halt all operations in Russia and Belarus. As a result, American Express cards issued worldwide would be unusable in Russia, and cards issued in Russia would not work abroad. Before 2022, about 60% of Russian travel companies used American Express to book hotels, as well as air and train tickets.
The company had previously severed ties with Russian banks impacted by U.S. and international sanctions.
Liliane Bivings
