Moscow could even end up facing tougher restrictions, Sber CEO Herman Gref believes

Western sanctions against Russia might not be lifted and could even be tightened, Herman Gref, CEO of the country's largest bank, Sber, suggested on Thursday, according to RBK.

The West has imposed an unprecedented number of sanctions on Russia over the Ukraine conflict, targeting a broad range of industries - particularly the financial sector - in an effort to destabilize the country's economy. Additionally, an estimated $300 billion belonging to Russia's central bank remains frozen in foreign depositories, primarily in the US and EU.

Speaking during an investor call, Gref emphasized Sber's cautious approach, stating that "we proceed with the scenario that no sanctions will be lifted." 

"Moreover, we assume that sanctions will be tightened," he said, adding that the easing would be considered a "happy bonus." 

Despite this stance, Gref noted that Sber is also evaluating a scenario in which Western sanctions are lifted.

He acknowledged that if sanctions are removed, it could have positive effects, including changes in oil price discounts, improved stock market performance, increased foreign capital inflow, reduced transaction costs, and simplified settlements.

Facing Western sanctions over the Ukraine conflict, Sber divested from the EU banking market in mid-2023. The lender had previously operated in the region through Sberbank Europe AG, with branches in eight EU countries, serving approximately 715,000 customers. Since then, the lender has largely focused on domestic operations while also expanding into Asia.

Talk about the sanctions being lifted and the potential return of Western companies to Russia has gained traction following the recent negotiations between Moscow and Washington in Saudi Arabia. The discussions were initiated after a phone call between Russian President Vladimir Putin and US President Donald Trump on February 12.

US Secretary of State Marco Rubio later suggested that Western nations might need to consider lifting sanctions on Russia to achieve an "enduring, sustainable" resolution to the Ukraine conflict.

Trump said on Tuesday that Washington could lift the sanctions "at some point" during peace negotiations.

According to Rubio, the EU would also need to be "at the table" to discuss sanctions relief, as it has imposed its own restrictive measures against Russia. Brussels has responded it intends to maintain an independent sanctions policy regardless of Washington's position.

This week, the EU adopted its 16th sanctions package. On Thursday, Trump also signed an executive order extending sanctions against Russia.

The Kremlin has repeatedly condemned the Western restrictions as illegal. Last week, Putin said that sanctions have, in fact, had the effect of strengthening Russia's economic and technological sectors, fostering closer collaboration among domestic businesses and scientific institutions. He also emphasized that any potential return of Western companies to Russia would need to be carefully regulated to protect domestic industries.