The chairman of Spanish bank Santander called for the European Union to define what kind of lending is considered consistent with a net zero energy policy, to help hasten moves to reduce dependence on Russian oil and gas.
The
EU, which was already targeting a shift towards green energy from
fossil fuels, has said since Russia invaded Ukraine in February that it
will cut Russian gas imports by two-thirds this year and end the use of
Russian gas by 2027. read more
"Among
other initiatives, financial institutions must be able to finance the
energy transition, and to this end, the authorities must define as soon
as possible what lending is deemed consistent with our net zero goals,"
Ana Botin told a shareholders meeting.
Botin
said that though Santander's direct exposure to Russia was negligible
at 80 million euros ($88.4 million), it expected some indirect impact
from the Ukraine conflict stemming from higher inflation and lower
economic growth.
She said the bank's internal assessment assumed "no further escalation and the war contained within Ukraine".
Botin
underlined the need to change global energy policies and accelerate
investments in renewables, "so we can help people to go green and
businesses to make the necessary transition".
She
said that process would be "more challenging" for emerging economies,
for small and mid-sized companies and vulnerable groups, and therefore
asked for incentives.
In
Spain, companies and families, especially SMEs and the most vulnerable
would need protecting from the impact of the war, which has sent energy
prices soaring. The Spanish government approved a 16 billion euro
package on Tuesday to help companies and households. read more
Botin said European funds could be used to help support confidence and private investment, a key driver of growth and jobs.
On
Thursday, the ECB said euro zone banks' direct exposure to Russia was
relatively minor but sanctions could still reverberate through the
financial system through volatility in energy and commodity prices. read more
Botin
assured shareholders that the bank had taken necessary steps to comply
with financial restrictions and EU, UK and U.S. sanctions imposed on
Russia, "and will continue to observe these requisites as the situation
develops".
Reuters
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