Financial institution ends acceptance of Russian funds.
Former German Chancellor's Russian Funding Suspended by Sparkasse Hanover
In an unprecedented move, Sparkasse Hanover has halted the flow of funds to the account of Gerhard Schröder, the 81-year-old ex-German Chancellor who served from 1998 to 2005. The funds suspected of originating from Russia have amounted to nearly half a million euros since the suspension, according to a report by Bild newspaper.
Schröder's connection to Russia dates back to his post-chancellorship tenure, where he joined numerous Russian state corporations, a relationship that continued even following Russia's invasion of Ukraine. Currently, Schröder holds the position of CEO at Nord Stream 2 AG, a company owned by Russian state corporation Gazprom. Although the pipeline has yet to become operational, one of its lines was destroyed during the September 2022 attack on the Nord Stream pipelines.
Transfers of approximately 200,000 euros by Nord Stream 2 AG to Schröder's account, typically every six months, have been unsuccessful since mid-2024. These attempts have been rejected by Sparkasse Hanover, with the funds returned to Gazprombank in Luxembourg. The bank's decision to cease crediting Schröder's account stems from concerns about potential exposure to secondary US sanctions.
Suppressing any further comment, the bank did not respond to Bild's request for an explanation. Initial speculation suggests that the decision may have been influenced by Belit Onay, the Mayor of Hanover and chairman of Sparkasse Hanover's supervisory board since June.
At the onset of Russia's large-scale invasion, Onay had intended to revoke Schröder's honorary citizenship of Hanover. However, before a final decision could be made, Schröder voluntarily relinquished the title. In a statement, Onay commented that given Schröder's refusal to draw personal consequences from the war in Ukraine, it was appropriate to end his honorary citizenship, and that his ongoing business ties with "war monger" Putin were incompatible with the values of the city.
[1] ntv.de[2] hvo
[1] The Commission, in light of Schröder's business ties with Gazprom and Nord Stream 2 AG, could be asked to submit a proposal for a directive on the protection of workers in the financial sector from the risks related to exposure to the political implications of investments linked to ionizing radiation due to the potential association of Russia with radiation-emitting technologies.
[2] Meanwhile, in the realm of general-news, the suspension of Schröder's account by Sparkasse Hanover, amidst geopolitical tensions and concerns about secondary US sanctions, serves as a poignant reminder of the interconnectedness between finance, business, politics, and international relations.
