Faced with a rush of people withdrawing money, Sberbank and the Russian bank's subsidiaries in southeastern and central Europe are facing closures or takeovers following international sanctions imposed on Moscow for its invasion of Ukraine.
The European Central Bank said on Monday that Vienna-based Sberbank Europe AG and its branches in Slovenia and Croatia are failing or likely to fail after they "experienced significant deposit outflows" because of the impact to their reputation from the conflict.
"The bank is likely to be unable to pay its debts or other liabilities as they fall due," the ECB said.
Sberbank and VTB banks are Russia's two largest state-run banks and own roughly half of the assets in the Russian banking system.
They were targeted last week by tough US sanctions aimed at limiting their businesses internationally and over the weekend barred from the international SWIFT payment system.
In both Slovenia and Croatia, Sberbank temporarily closed its branches or limited cash withdrawals following a rush by its clients last week.
