Russia is said to be losing another banking partner as more lenders turn their backs on Moscow over fears of sanctions

• Russia is expected to be spun off from another bank at the end of the month.

• A source told Bloomberg that Singapore’s OCBC planned to stop processing Russian transactions.

• The bank would pursue creditors from China, who have largely withdrawn from Russia.

Another bank appears to be turning its back on Russia as lenders grow wary of doing business with Moscow under the threat of Western sanctions.

Oversea-Chinese Banking Corp., Singapore’s second-biggest lender, has told its clients it will no longer process any Russia-related transactions from early November, a person familiar with the matter told Bloomberg in a published report this week.

The person said those transactions included the transportation and sale of goods and services in Russia, and that OCBC attributed the withdrawal to operational challenges related to compliance and regulation.

The new restrictions are not expected to significantly affect the bank, given that OCBC has not opened new accounts for Russian customers for two years, the source added.

The bank did not immediately respond to requests for comment from Business Insider.

The changes would be another sign of lenders’ growing reluctance to work with Russian clients after the West threatened to impose secondary sanctions on firms doing business in the country.

A Russian state media outlet reported that almost all Chinese banks have stopped processing payments from Russia for fear of being targeted.

Meanwhile, Russia has nearly exhausted its yuan reserves and billions in business were blocked earlier this year amid overseas payment problems, according to data from Russia’s central bank.

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