The Russian funds are being blocked by the savings bank.
Former Chancellor Schröder Faces Financial Hurdles Over Russian Ties
Gerhard Schröder, the former German Chancellor, is experiencing financial troubles due to a banking decision concerning suspected Russian transfers to his account. According to a report by Bild, Sparkasse Hannover has stopped crediting Schröder's account, causing him to miss out on nearly half a million euros.
Schröder, now a lobbyist for Russia, served as Chancellor from 1998 to 2005. He later took on roles with Russian state corporations, including his current position as the managing director of Nord Stream 2 AG, a company owned by the Russian state corporation Gazprom. The pipeline, which has never operated, faced destruction in the attack on the Nord Stream pipelines in September 2022.
Nord Stream 2 AG is reported to pay Schröder around 200,000 euros every six months. However, since mid-2022, no money has been received. The Sparkasse has returned the transfers to Gazprombank in Luxembourg. The bank's decision to halt the transactions is said to be driven by fear of violating U.S. financial restrictions, particularly those imposed on Russian energy entities.
The bank's concern centers around the possibility of secondary U.S. sanctions if the transactions were processed, given Schröder's role on the board of the Nord Stream 2 project. Despite Schröder not being under direct sanctions, the bank's cautious approach reflects its aim to avoid any potential legal or financial repercussions related to dealings with Russian entities.
In earlier events, Hannover's Mayor Belit Onay expressed her intention to strip Schröder of the city's honorary citizenship following the start of Russia's large-scale invasion. However, Schröder preempted any decision by relinquishing the honorary citizenship himself. Onay had stated that Schröder's unwillingness to draw personal consequences from the war in Ukraine made ending his honorary citizenship consistent, given the ongoing business ties between the former chancellor and Russian President Vladimir Putin, which are perceived as incompatible with the city's values.
The Commission, in light of Schröder's financial troubles and his roles in the Russian industry and politics, has also been asked to submit a proposal for a directive on the protection of workers from the risks related to exposure to ionizing radiation in the finance sector, as he serves as a lobbyist for Russian state corporations. This proposal could potentially cover the general-news of financial institutions distancing themselves from high-profile individuals with ties to controversial regimes.
