When Svetlana Sarantseva relocated to Portugal from Singapore in 2021, she looked forward to starting a family and working as a nutrition coach on the Azores archipelago. Little did she anticipate that tension between Moscow and Ukraine in 2022 would complicate even basic tasks like opening a bank account for her, despite no personal sanctions.
This struggle is echoed by many Russians residing in the European Union who have encountered challenges in accessing or maintaining bank accounts since Russia's actions in February 2022. Despite EU regulations granting all legal residents the right to a basic account, numerous Russian expats have faced account closures or refusals from financial institutions.
Sarantseva's experience is not unique; she has attempted to open accounts with multiple banks, only to face rejections based on her nationality. The variety of reasons provided by banks for these rejections highlight the complexities at play, from "lack of commercial interest" to nationality-based restrictions.
The hurdles faced by affected individuals have forced some to resort to alternative methods for financial transactions, like borrowing from acquaintances or using cryptocurrencies. Those who manage to secure an account often do so after significant effort, sometimes involving legal assistance.
While citizens from countries under sanctions like Iran and Syria have long faced similar obstacles, the banking difficulties encountered by Russians are relatively new. Efforts by organizations and individuals have led to some reversals of bank decisions, but numerous cases remain unresolved.
The European Commission and local regulators acknowledge these challenges faced by Russian residents but cite reasons such as uncertainty around sanctions compliance and heightened monitoring obligations as contributing factors. Despite legal provisions ensuring access to bank accounts for all legal residents, including Russians, financial institutions remain cautious in their approach.
Individuals like Sarantseva and her husband have had to navigate bureaucratic hurdles and seek alternative solutions to access essential banking services. The ongoing complexities highlight the need for clearer guidelines and increased awareness to ensure equal treatment for all legal residents in the banking sector.