The Central Bank of Russia has revoked the banking licence of American Express's Russian subsidiary following the US lender's request for voluntary liquidation.

This move comes more than two years after the company suspended all operations in Russia in response to what it termed an "unjustified attack on the people of Ukraine".

Russian President Vladimir Putin issued a decree in May allowing American Express to liquidate its Russian business. The company had initially halted its Russian operations in March 2022, shortly after Moscow launched its full-scale invasion of Ukraine, which Russia refers to as a "special military operation".

According to the Russian central bank, American Express's subsidiary ranked 300th in the country's banking system in terms of assets. The lender's Russian unit filed for liquidation in early July, as shown in Russia's corporate registry, SPARK.

Since mid-2022, foreign banks have required Putin's approval to exit the Russian market or sell stakes in their Russian business. This requirement has complicated the withdrawal process for many international financial institutions seeking to reduce their exposure to Russia following the outbreak of hostilities in Ukraine.

When American Express initially suspended its Russian operations in March 2022, the company reported having dozens of staff inside Russia. It remains unclear how many employees the bank currently maintains in the country.

The decision to cancel American Express's banking licence in Russia marks another step in the ongoing economic decoupling between Russia and Western financial institutions. Many international companies have faced challenges in navigating the complex geopolitical landscape and regulatory environment in Russia since the onset of the Ukraine conflict.

American Express is yet to comment on the news.

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