The move will reduce complexity, costs, risks, and capital consumption, while putting close to 200 jobs at risk.
The bank has put in place an implementation plan to ensure the orderly transfer of client services over the coming months.
The transition and the closure of the CB&S operations is expected to be completed by the end of this year.
Deutsche Bank will now operate its Russian corporate finance and markets businesses from international centers. However, it will continue to offer prices in Russian securities to clients, by enlisting the help of third party firms for local execution, as well as provide banking services to key clients in the country.
The bank will also continue to serve wealth management clients but will consolidate administration and booking offshore.
After the scaling down of operations, Deutsche Bank will have left approximately 1,100 employees in the country.
Earlier this month, the German global banking and financial services company announced plans to reduce its workforce by 25%, in a bid to cut down costs.
The job cuts will be achieved through layoffs in administrative and technology divisions and by divesting its consumer bank unit Deutsche Postbank.
These moves come admist economic sanctions on Russia by the West, dip in ruble value, and the global drop in oil price, which have all taken a toll on the country’s economy.
Several global financial firms are scaling down their operations in Russia. French firm BNP Paribas ended its local fund-management venture, Austriaan firm Raiffeisen Bank International divested its pension fund and German reinsurer Munich Re closed its office in Moscow.
Image: Deutsche Bank in Berlin, Germany. Photo: courtesy of Bufi / Wikimedia Commons.
