By Jesús Aguado
MADRID – The chairman of Spanish financial institution Santander on Friday referred to as for the European Union to outline what sort of lending is taken into account per a internet zero power coverage, to assist hasten strikes to cut back dependence on Russian oil and fuel.
The EU, which was already focusing on a shift in direction of inexperienced power from fossil fuels, has mentioned since Russia invaded Ukraine in February that it's going to lower Russian fuel imports by two-thirds this yr and finish using Russian fuel by 2027.
“Amongst different initiatives, monetary establishments should be capable of finance the power transition, and to this finish, the authorities should outline as quickly as potential what lending is deemed per our internet zero objectives,” Ana Botin instructed a shareholders assembly.
Botin mentioned that although Santander’s direct publicity to Russia was negligible at 80 million euros ($88.4 million), it anticipated some oblique affect from the Ukraine battle stemming from larger inflation and decrease financial progress.
She mentioned the financial institution inner’s evaluation foresaw “no additional escalation and the conflict contained inside Ukraine”.
Botin underlined the necessity to change world power insurance policies and speed up investments in renewables, “so we might help individuals to go inexperienced and companies to make the mandatory transition”.
She mentioned that course of could be “more difficult” for rising economies, for small and mid-sized corporations and weak teams, and due to this fact requested for incentives.
On Thursday, the ECB mentioned euro zone banks’ direct publicity to Russia was comparatively minor however sanctions may nonetheless reverberate by means of the monetary system by means of volatility in power and commodity costs.
Botin assured shareholders that the financial institution had taken vital steps to adjust to monetary restrictions and EU, UK and U.S. sanctions imposed on Russia, “and can proceed to look at these requisites because the scenario develops”.
Santander’s Chief Government Officer, Jose Antonio Alvarez, mentioned the financial institution was strengthening controls in opposition to potential operational threats, together with cybersecurity and cash laundering.
Spanish banks typically rank among the many much less uncovered to Russian credit score, with Spain’s central financial institution estimating their credit score danger at simply above 700 million euros.
Alvarez mentioned Santander anticipated the conflict to have an uneven affect on the group’s areas, with Europe probably the most affected space. The affect in South America could be impartial or optimistic, he mentioned, as uncooked materials there could be exported at larger costs leading to a forex appreciation.
($1 = 0.9047 euros)
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