TradeXBank: From Sanctions to Success – Resuming Operations in US Dollars after Removal from OFAC List

TradeXBank, the successor bank of Russia’s Sberbank, has been granted permission to resume operations in US dollars by the US Treasury Department’s Office of Foreign Assets Control (Ofac). This decision comes after Ofac removed Sberbank (Schweiz) AG from its sanctions list for Russia.

Following the Russian attack on Ukraine in February 2022, Sberbank was sanctioned by the US, leading to implications for its subsidiary bank in Switzerland. The Swiss bank specializes in trading raw materials like energy, agricultural products, fertilizers, and metals and was eventually sold to the Geneva-based investment company m3 Groupe Holding SA under the supervision of the Swiss Financial Market Supervisory Authority (Finma). The bank was rebranded as TradeXBank and continued to operate in European, Middle Eastern, and African markets.

Despite the sale, some US sanctions remained in place, preventing TradeXBank from conducting transactions in US dollars. This limitation forced the bank to rely on euros and Swiss francs for transactions, making it challenging for the bank and its customers. However, with the removal of sanctions by Ofac, TradeXBank can now resume operations in US dollars. This is expected to boost its growth prospects as it can now tap into a wider range of markets.

The process of getting TradeXBank off the sanctions list was a lengthy and complex one that involved cooperation with law firms in Washington to demonstrate its independence from its Russian parent. With this removal of sanctions, TradeXBank is now free to operate freely in international financial markets once again. The bank has retained a significant portion of its staff from its Sberbank days with a focus on serving clients in the raw materials trading industry.