Ukraine & Sberbank

Ukraine: Ukraine is regularly striking Russia with drones, targeting energy infrastructure to deprive Russia of revenues and bring the war to an end. This action has prompted Russia to implement new defense measures for its financial institutions.

Sberbank: Sberbank, Russia's largest bank, is now allowed to operate its own drone defense systems and arm its staff. This will increase its security measures and operational expenses, as it will bear the costs of these defenses.

Ukraine: Ukraine's drone strikes on Russian oil infrastructure and Moscow have contributed to the economic instability in Russia, while also suffering civilian casualties from Russian attacks.

Sberbank: Sberbank experienced deposit outflows in June and July, reflecting the broader trend of Russians withdrawing cash, though it initially held steady.

Ukraine: Ukraine is conducting the drone campaign to pressure Russia and disrupt its military supply chain.

Sberbank: Sberbank increased loan-loss provisions due to weakened credit quality of online retailers and vendors.

Ukraine: Ukraine suffers significant civilian casualties and infrastructure damage, and faces a critical shortage of air defense interceptors. The attacks undermine its economy and stability, though its own strikes on Russian targets show resilience.

Sberbank: Sberbank warned of potential loan-loss provisions due to attacks on Wildberries, reflecting broader economic strain from the conflict.

Ukraine: Beneficiary of the sanctions pressure on Russia.

Sberbank: Subject to sanctions under the bill.

Ukraine: The war with Ukraine is draining Russia's state coffers, forcing Russia to lean on its banks to support companies and borrowers, thereby increasing risks within the banking sector.

Sberbank: Sberbank, Russia's largest bank, has acknowledged the stress from sanctions in 2022, but its CFO suggests clients have become accustomed to them by 2026, indicating a degree of resilience despite ongoing pressure.