DUBAI, UNITED ARAB EMIRATES. AP.
The United Arab Emirates (UAE) has granted Russia's MTS Bank a banking license.
The decision risks stoking Western concerns that the Gulf state is becoming a haven for Russian financial interests.
- MTS Bank is the first foreign financial institution to be granted a UAE banking license for several years.
- UAE officials said the decision was made to accommodate the growing demand from Russian expatriates for financial services in the country.
- Brian Nelson, U.S. Treasury under-secretary for terrorism and financial intelligence, expressed concerns about the UAE's decision last week.
- Deputy Treasury secretary Wally Adeyemo warned the UAE in June against the “threat of illicit financial flows," from Kremlin-linked entities.
- MTS Bank is not currently subject to Western sanctions and UAE officials have emphasized that they refuse to discriminate against individuals and companies that have not been sanctioned.
- The Russian expatriate community in the UAE has grown rapidly since Moscow launched its invasion of Ukraine last year.
- Many Russians moved to the UAE to avoid financial restrictions placed on Russia by Western countries following the invasion.
- The UAE perceives that the U.S. has grown increasingly detached from the Middle East and has been strengthening relations with Russia and China.
