Quote Originally Posted by OUTLAW 09 View Post
Firn---does not pulling your funds back to your own country actually short and long cut into your money as money especially large amounts are generally designed to earn more money not sit in a bank inside Russia---and then to pay demands-- costs more as you then need to pay transfer fees out of Russia so in effect the cost of doing business generally rockets for large amounts.

Also have you seen any movement of funds out of their sovereign funds?

Europe is waiting for the Rubel/their stock market blood bath tomorrow--maybe that is why a lot came home as well.
You make a key point. One of the most basic fundamentals is the trade-off between liquidity and return. The potential danger of a asset freeze and possibly the Russian state's demand for foreign currency has likely caused the capital pull. Under crisis conditions liquidity becomes king as the bank might get squeezed from two sides. Freezing a banks asset can bust it pretty quickly.

Overall the decision of those Russia companies makes it of course harder for them to do business in Europe and the US. Even without sanctions their integration into the Western capital markets looks threatened.


P.S: An interesting follow-up would be to see what happens to the two international subsidaries of Sberbank. Will they have enough liquidity and equity to handle themselves in a potentially hostile environment?

Even without sanctions I would understand a costumer to turn up rather sooner then later to shift out his deposits....