DBS Group Holdings Ltd., Oversea-Chinese Banking Corp. and United Overseas Bank Ltd. have stopped issuing letters of credit involving Russian energy deals because of uncertainty over the course of sanctions, according to the people, who asked not to be identified as the information isn’t public. OCBC’s restrictions cover all commodities, one of the people said.
Singapore’s biggest banks are restricting trade financing for Russian raw materials, as the war in Ukraine spurs lenders in Asia’s largest energy and commodities trading hub to reduce exposure to the sanction-hit country.
The limits include a halt on issuing so-called letters of credit in US dollars for trades involving Russian commodities, including oil and liquefied natural gas, according to people familiar with the situation.
