AmEx's Russian Unit Liquidates Amid Tensions

Russia's central bank revoked the banking license of American Express's Russian subsidiary following a voluntary liquidation request. This move aligns with President Putin's decree allowing American Express to exit the Russian market. AmEx initially suspended its operations in Russia due to the conflict in Ukraine.

In a decisive move on Tuesday, Russia's central bank revoked the banking license of American Express Co.'s Russian subsidiary. This followed a voluntary liquidation request filed by the U.S. lender's unit.

This action is in accordance with President Vladimir Putin's decree in May that permitted American Express to wind up its Russian operations. The decision comes a little over two years after the global financial services firm suspended its Russian activities in response to what it termed as Russia's 'unjustified attack on the people of Ukraine.'

The central bank highlighted that the subsidiary ranked 300th in the nation's banking system by assets. It's been mandated since mid-2022 that foreign banks need Putin's approval to exit the Russian market or divest stakes in local businesses. An application for liquidation was filed by the Russian unit earlier this July, according to data from Russia's corporate registry, SPARK. American Express has yet to comment on the latest development. In March 2022, following Moscow's full-scale invasion of Ukraine labeled as a 'special military operation,' American Express reported having dozens of employees in Russia, and the current staff count remains unclear.