Credit Suisse Wealth Unit Froze $5 Billion on Russia Sanctions

(Bloomberg) -- Credit Suisse Group AG has frozen approximately $5 billion of assets linked to Russia because of U.S. sanctions against the country.

The bank’s key wealth management unit suspended 5.1 billion francs of money linked to the country, according to a reference in its financial report last month. The Zurich-based lender said higher assets under management were offset in part “by structural effects primarily reflecting the impact of the US sanctions involving Russia,” confirming the amount on Wednesday.

“Credit Suisse works with international regulators wherever it does business to ensure compliance with sanctions, including compliance with sanctions involving Russia," a spokesman for the bank said. The international wealth management unit manages 370 billion francs in private banking assets.

Credit Suisse and Zurich-based rival UBS Group AG earlier this year halted trading in companies owned by Russian oligarch Victor Vekselberg. In April, Vekselberg and his investment company Renova Group appeared on a list of oligarchs, companies and senior government officials subject to sanctions unveiled by the U.S. Treasury, intended to punish Russia for actions in Crimea, Ukraine and Syria.

Viktor Vekselberg’s net worth has fallen by an estimated $3 billion due to American penalties, Sigal Mandelker, the Treasury Deptartment’s top terror and financial intelligence official, told the Senate Banking Committee earlier this week.

Reuters reported the freezing earlier on Wednesday.

©2018 Bloomberg L.P.