Abu Dhabi, UAE — The Central Bank of the UAE Friday revoked the license of Russia’s MTS Bank’s, which was granted last year.
The bank said that under its supervision, the operations of MTS bank, which is licensed in Abu Dhabi, would be wound down within six months.
Revocation of MTS’s license comes weeks after it was added to a fresh round of sanctions by the United States and the UK.
“This decision comes after considering the available options regarding the new status of the MTS Bank and taking into account the sanctions risks associated with the bank after the designation,” the Central Bank said in a statement.
The branch would be prohibited from opening new accounts and conducting transactions, except for clearing prior obligations during the winding down period. The bank’s use of Central Bank’s payment systems will be restricted to this purpose only.
MTS is a fintech unit of Mobile TeleSystems, Russia’s largest mobile operator. Sistema, a conglomerate, holds a 42.09 percent stake in MTS.
The UAE has maintained good ties with Moscow despite the pressure from the West to isolate Russia for invading Ukraine. A large number of wealthy Russians have shifted to the Emirates after the war, injecting millions of dollars into real estate and other businesses.