Russia’s Sberbank collapses 95% on London stock exchange as it exits Europe

The logo of the Russian state-owned bank Sberbank is pictured next to a red traffic light, at its European subsidiary headquarters in Vienna on February 28, 2022.

On the London Stock Exchange, shares of Russia's Sberbank plummeted as low as a penny after the bank announced that it was pulling out of the European market.

The European subsidiaries of Russia's largest lender had experienced abnormal cash outflows and expressed concern for the safety of their employees and properties.

Austria's Financial Market Authority said Sberbank's European arm was likely to fail after Russia invaded.

The U.S., European Union and the U.K. have imposed sanctions against Russia's institutions in recent days, barring key banks from the international payment system and limiting the Central Bank of Russia's capacity to use more than $600.

Sberbank shares were down 94.24% in late morning trade in London. The bank's value has plummeted since the beginning of the year.

Russian stocks in London saw similar declines on Wednesday.

Moscow's stock market has been closed for three days as authorities try to stem the bleeding of local assets.