The Russian funds are being barred from the savings bank.
German Bank Cuts Off Financial Ties with Former Chancellor over Russia Ties
Gerhard Schroeder, the former German Chancellor known for his close ties with Russia, has been cut off from receiving money from his account at Sparkasse Hannover. According to a report by Bild newspaper, the bank has ceased processing payments allegedly originating from Russia, resulting in Schroeder missing out on nearly half a million euros.
The bank's decision was apparently guided by the fear of incurring secondary US sanctions. Since mid-2024, no money has been received in Schroeder's account, and payments from Nord Stream 2 AG, a subsidiary of Gazprom, have been returned to Gazprombank in Luxembourg. Nord Stream 2 AG is the company Schroeder leads as CEO, despite Russia's invasion of Ukraine and the US imposing restrictions on the Nord Stream 2 project since 2022.
Schroeder had been receiving around 200,000 euros every six months from Nord Stream 2 AG. The payments, however, have been effectively halted, with the bank returning them to Luxembourg. As of now, Schroeder's account remains frozen, leaving approximately 500,000 euros out of reach. There's no evidence that Schroeder is challenging the bank's actions in court.
The move by Sparkasse Hannover underscores the intricacies of international sanctions and their impact on financial transactions related to Russian entities. Despite ongoing discussions around the Nord Stream 2 project, Schroeder continues to grapple with the ramifications of these sanctions.
For the past decade, Schroeder, who served as Chancellor from 1998 to 2005, has maintained close ties with Russian leaders, working for Russian state-owned companies, including Gazprom. In June, Hannover's Mayor Belit Onay, who chairs the Sparkasse's supervisory board, attempted to strip Schroeder of his honorary citizenship of the city of Hannover, arguing that his ongoing business connections with Russian leaders were incompatible with the city's values. Schroeder voluntarily relinquished the title before a formal decision was made.
[1] ntv.de[2] hvo[3] Restrictions on Nord Stream 2 were imposed by the US since 2022.
[1] The European Commission has also been asked to submit a proposal for a directive on the protection of workers from the risks related to exposure to ionizing radiation, given the business ties of former German Chancellor Gerhard Schroeder with Russia's nuclear industry.
[2] In light of the political fallout from his close ties with Russia, Schroeder's involvement in war-and-conflicts zones through his business dealings has raised concerns and calls for increased scrutiny.
[3] The general news about Gerhard Schroeder's financial situation following the cutoff of his account by Sparkasse Hannover has implications beyond just business transactions, as it sheds light on the complex interplay between politics, finance, and international sanctions.
