Italian CiviBank Freezes Accounts of Russian Citizens

In January 2025, the Italian branch of Sparkasse, unexpectedly revived the European Commission’s 2022 ruling and blocked the accounts of Russian citizens. While clients may challenge CiviBank’s decision, the move aligns with Europe’s broader trend of tightening restrictions on financial interactions with Russians.

This follows a recent move by Italy’s largest bank, Intesa Sanpaolo, which ceased processing euro payments from Russian financial institutions on January 15, 2025. The bank also restricted correspondent account services for its Russian subsidiary, allowing euro transactions only for commercial purposes within Intesa, its subsidiaries, and banks located in Italy.

This decision has impacted small and medium-sized enterprises (SMEs), exporters, importers, and businesses in services and manufacturing sectors. According to Andrey Gusev, managing partner at Nordic Star Law Office, 15 Russian banks use Intesa’s correspondent accounts. Companies relying on long-term euro-denominated contracts now face difficulties, forcing them to seek alternative transaction routes.

Frozen Assets and Increasing Sanctions Pressure

Italy has previously frozen Russian and Belarusian assets worth €2 billion by July 2023, as part of sanctions enforcement. This included luxury properties, yachts, and high-end cars, according to Kommersant.

By June 2023, Italian authorities had frozen 170 financial transactions involving 80 entities, totaling over €330 million.

European banks began blocking personal accounts of Russian citizens after the EU’s February 2022 sanctions package. At that time, Russians were prohibited from holding more than €100,000 in EU bank deposits. Additionally, EU depositories were barred from providing services for the sale of securities issued after April 12, 2022.

Although initial restrictions mainly targeted sanctioned individuals and companies, many Russian expats residing in Europe encountered financial difficulties despite not being subject to the official sanctions list.

To avoid penalties of up to 10% of their annual revenue, EU banks adopted an overly cautious approach, temporarily suspending services while conducting compliance checks. These measures were most prevalent in Germany and France, with similar incidents reported in Spain and Portugal.

The biggest victims of these account freezes included Russian citizens on visas, as well as those with residence permits (residency status) and even European citizenship.

Cyprus, Czech Republic, and Other Nations Intensify Restrictions

Between 2023 and 2024, Cyprus took aggressive action against Russian account holders:
- Initially, accounts were closed for Russian tax residents.
- Later, even long-term residents and working professionals with all required documentation faced account closures.
- Bank of Cyprus alone froze approximately 4,000 Russian accounts.
- Hellenic Bank sent termination notices to hundreds of Russian clients.
- In the Czech Republic, banks also blocked and canceled accounts of Russian and Belarusian nationals, including those with work and student visas .

Meanwhile, Revolut restricted Russian financial operations**, tightened proof-of-residency requirements, and enforced strict compliance checks.

Russian nationals in France and Latvia faced increased scrutiny and account closures.

UAE Banks Join the Crackdown on Russian Accounts

Even financial institutions outside the EU have tightened restrictions.

Emirates NBD, one of the UAE’s largest banks, froze payments on Russian securities and blocked access to financial assets.
In early 2024, multiple UAE banks restricted transactions with Russia and began closing both corporate and individual accounts [leech=https://www.vedomosti.ru/economics/articles/2024/02/19/1020942-krupnie-banki-oae-ogranichili-rascheti-s-rf]as reported by "Vedomosti".

By the end of 2024, UAE banks extended payment processing times for Russian transactions, increasing transfer times by 29%, with some payments taking up to 14 days. Certain transactions were outright rejected.

Switzerland Tightens Financial Controls on Russians

Even Switzerland, known for its historically neutral banking policies, has stepped up enforcement.

In 2023, Swiss banks restricted services for Russians who paid taxes in Russia.

In 2024, UBS and Credit Suisse notified at least ten Russian clients—including those with dual citizenship—of account closures. Even Russians who paid Swiss taxes and had no financial ties to Russia were affected.

Russian nationals without Swiss residency had their accounts automatically blocked, with new account openings denied.

Growing Sanctions and Global Banking Restrictions

Sanctions against Russian individuals and companies are expanding across global financial institutions.

Today, many banks worldwide have either restricted or completely severed ties with Russian clients. Even non-EU countries like Turkey and China have imposed banking limitations. Financial institutions in CIS countries (former Soviet states) have also implemented tighter compliance measures.
As restrictions grow, the ability of Russian citizens to conduct financial transactions internationally is becoming increasingly difficult, with account closures, payment delays, and service suspensions now a widespread issue across multiple jurisdictions.