European Banks to Isolate Russian FI Computer Networks

In the latest move to protect Ukraine from Russian cyberattacks following the invasion, European banks with branches in Russia are separating those financial institutions (FIs) from their computer networks, Bloomberg reported Monday (March 14).

Commerzbank AG, one of the largest banks in Germany, is readying to suspend its Russian unit from its network, sources told the news outlet.

The Frankfurt-based FI has the ability to put branches on hold with a “kill switch,” people familiar with the matter said.

A second source told the news organization that Deutsche Bank, one of the world’s largest financial service providers also based in Germany, is transferring its tech tasks in Ukraine to other countries.

In its annual report last week, Deutsche Bank said it has seen increased cyberattacks since the start of the conflict.

Last week, Deutsche Bank Chief Financial Officer James von Moltke told Bloomberg TV that the lender is taking a proactive stance on cyber risks emerging in Ukraine. He noted that the bank has taken steps years before the invasion to curb cyber risks at the unit.

Reuters recently reported BNP Paribas S.A., the Paris-based international banking group, barred its Russia-based staff from its internal computer systems to protect against any potential cyberattack.

In addition to missile attacks, Ukraine has expressed concern about Russia’s potential to sabotage its IT infrastructure.

The actions against Russia come as the European Union announced the expansion of sanctions imposed after the Ukraine invasion from Russia to Belarus, the European Commission clarified that crypto assets were covered by sanctions.

See also: In Expanded Russia Sanctions, EU Suggests It Defines Cryptocurrencies as Securities

The EU confirmed that loans and credit can be provided by any means, including crypto assets. It also clarified the idea of transferable securities, including crypto-assets, ensure the proper implementation of the restrictions in place.