Financial institution is halting transactions involving Russian funds.
Former Chancellor Gerhard Schröder, known for his ties with Russia, has faced financial inconvenience due to Sparkasse Hannover halting payments to his account, suspected of originating from Russia. According to Bild, the bank has refused to credit Schröder's account with transfers, denying him nearly half a million euros so far.
Schröder, 81, has been employed by Russian state corporations since his tenure as Chancellor from 1998 to 2005, even after Russia's invasion of Ukraine. He continues to serve as CEO of Nord Stream 2 AG, a company owned by the Russian state corporation Gazprom. Despite the pipeline never operating and one of its strings being destroyed in the September 2022 attack on the Nord Stream pipelines, Nord Stream 2 AG reportedly pays Schröder around 200,000 euros every six months - payments that, since mid-2024, have not reached Schröder's account.
Instead, Sparkasse has been sending the transfers back to Gazprombank in Luxembourg. Bild reports that the bank's reason for this move was the potential risk of violating international financial restrictions and exposure to secondary sanctions, particularly those imposed by the United States on Russian energy entities. The decision may have been influenced by pressure from Hannover's Mayor Belit Onay, who became the chairman of Sparkasse's supervisory board in June. Neither Onay's spokesperson nor the bank responded to Bild's request for comment.
Previously, Onay had planned to strip Schröder of Hannover's honorary citizenship following Russia's large-scale invasion. However, Schröder resigned from the honor before a decision could be made. In a statement, Onay argued that Schröder's ongoing business ties with President Vladimir Putin were incompatible with the city's values, given the war in Ukraine.
As of the latest reports, Schröder's account at Sparkasse Hannover no longer receives payments from Russia. The bank has been rejecting and returning funds routed via Gazprombank in Luxembourg since mid-2024, and Schröder has yet to regain access to these funds. There is currently no indication that the bank's restrictive measures have been lifted.
[1] ntv.de[2] hvo[4] uni-passau.de[5] politico.eu
- The financial difficulties faced by former Chancellor Gerhard Schröder, a known figure in business, politics, and general-news, may escalate as he grapples with the non-payment of funds from Russia, due to Sparkasse Hannover's restrictive measures, potentially influenced by politics, particularly the concerns of Hannover's Mayor Belit Onay over violating international financial restrictions.
- While Schröder continues to receive payments from Nord Stream 2 AG, a company linked to Russia's Gazprom, these payments have been blocked by Sparkasse Hannover, creating a significant financial hurdle for the former Chancellor, who has been embroiled in controversies surrounding his business ties with Russia, particularly since Russia's invasion of Ukraine.
- The Commission, in the midst of addressing issues related to the protection of workers from the risks related to exposure to ionizing radiation, may find itself entangled in the repercussions of Schröder's financial predicament, as his ongoing legal battle with Sparkasse Hannover over the returned funds from Russia potentially expands to include allegations of crime-and-justice implications, such as violations of international financial restrictions.
