Dubai-based Mashreq Bank, one of the oldest private banks in the United Arab Emirates, has suspended lending to Russian financial institutions due to high risks caused by the situation around Ukraine, Reuters reported on Wednesday, citing sources.

According to them, in recent years, Mashreq has significantly increased its international loan portfolio in emerging markets, including by issuing loans to Russian financial institutions. After the outbreak of hostilities in Ukraine, the bank decided to revise its risk policy.

Reuters notes that earlier Middle Eastern banks did not limit their presence in the Russian financial market due to fears of falling under US and EU sanctions. At the same time, the sources emphasized that the decision to suspend lending to financial organizations from Russia was made by the management of Mashreq to reduce risks and was not due to any instructions or recommendations from the Central Bank of the UAE.