Since Russia’s invasion of Ukraine in 2022, thousands of Russian expatriates living in the European Union have faced increasing difficulties in accessing basic banking services, Reuters reports.
Many have had their accounts closed or have been denied new ones, leaving them struggling to manage their finances despite not being subject to any sanctions themselves.
European banks have heightened their scrutiny of Russian passport holders, often citing internal policies, compliance with sanctions, or anti-money laundering regulations. However, under EU law, all legal residents—regardless of nationality—are entitled to a basic bank account. Despite this, numerous Russians across the EU have been unable to open accounts, making everyday financial transactions challenging.
Svetlana Sarantseva, a Russian-born nutrition coach who moved to Portugal in 2021, found herself in an unexpected predicament when banks repeatedly rejected her applications. Despite living abroad for 30 years and having no ties to the Russian government, she was denied services by multiple institutions. Banks provided varying reasons, with one stating they only served Portuguese citizens and another citing “a lack of commercial interest.”
The issue affects a wide range of individuals, from students to long-time residents and political activists. Some have resorted to borrowing from friends and family, while others have turned to cryptocurrency as an alternative. Even when Russians manage to open accounts, the process is often lengthy and requires legal assistance.
Human rights organizations have stepped in to challenge these banking practices. In Italy, the Iskra group has successfully reversed thousands of bank rejections and has filed legal cases against dozens of financial institutions. However, for many Russians, the obstacles remain significant.
While EU regulations grant all legal residents the right to a bank account, banks maintain discretion under anti-money laundering and counter-terrorism financing laws. This cautious approach has resulted in widespread denials, with some financial institutions incorrectly citing sanctions as a reason to refuse services.
The European Commission has acknowledged the issue but has received relatively few formal complaints from Russian citizens. Nonetheless, financial regulators in Germany and Portugal have stated that there is no general prohibition against non-sanctioned Russian customers, though banks retain the right to enforce their internal risk policies.
