Botin urges EU to define green lending to reduce dependence on Russian energy
By Jesús Aguado
MADRID (Reuters) -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 web zero power coverage, to assist hasten strikes to cut back dependence on Russian oil and gasoline.
The EU, which was already focusing on a shift in the direction of inexperienced power from fossil fuels, has stated since Russia invaded Ukraine in February that it’s going to minimize Russian gasoline imports by two-thirds this yr and finish the usage of Russian gasoline by 2027.
“Amongst different initiatives, monetary establishments should be capable to finance the power transition, and to this finish, the authorities should outline as quickly as doable what lending is deemed per our web zero objectives,” Ana Botin informed a shareholders assembly.
Botin stated that although Santander’s direct publicity to Russia was negligible at 80 million euros ($88.4 million), it anticipated some oblique influence from the Ukraine battle stemming from greater inflation and decrease financial progress.
She stated the financial institution’s inside evaluation assumed “no additional escalation and the battle contained inside Ukraine”.
Botin underlined the necessity to change world power insurance policies and speed up investments in renewables, “so we will help individuals to go inexperienced and companies to make the required transition”.
She stated that course of can be “tougher” for rising economies, for small and mid-sized firms and susceptible teams, and due to this fact requested for incentives.
In Spain, firms and households, particularly SMEs and essentially the most susceptible would wish defending from the influence of the battle, which has despatched power costs hovering. The Spanish authorities accredited a 16 billion euro bundle on Tuesday to assist firms and households.
Botin stated European funds might be used to assist assist confidence and personal funding, a key driver of progress and jobs.
On Thursday, the ECB stated euro zone banks’ direct publicity to Russia was comparatively minor however sanctions may nonetheless reverberate by way of the monetary system by way of volatility in power and commodity costs.
Botin assured shareholders that the financial institution had taken needed steps to adjust to monetary restrictions and EU, UK and U.S. sanctions imposed on Russia, “and can proceed to watch these requisites because the state of affairs develops”.
Santander’s Chief Govt Officer, Jose Antonio Alvarez, stated the financial institution was strengthening controls towards potential operational threats, together with cybersecurity and cash laundering.
Spanish banks normally rank among the many much less uncovered to Russian credit score, with Spain’s central financial institution estimating their credit score threat at simply above 700 million euros.
Alvarez stated Santander anticipated the battle to have an uneven influence on the group’s areas, with Europe essentially the most affected space. The influence in South America can be impartial or optimistic, he stated, as uncooked materials there can be exported at greater costs leading to a forex appreciation.
($1 = 0.9047 euros)
(Reporting by Jesús Aguado; extra reporting by Emma Pinedo; modifying by John O’Donnell and Catherine Evans)
