The exposure of Luxembourg banks to Russian counterparties fell by -44% between the end of 2021 and 2022, according to figures from the Luxembourg Central Bank (BCL). Over the same period, the exposure of Luxembourg investment funds to Russian residents shrank by -93%.

Luxembourg banks’ exposure to companies and individuals in Russia totalled €2.37bn as of 31 December 2022, about 0.25% of Luxembourg banks’ total assets. That is down from €4.3bn as of 31 December 2022, which was 0.45% of Luxembourg banks’ total assets.

Luxembourg banks had roughly €2.28bn in loans outstanding at the end of December 2022, the vast majority (80%) to non-financial corporations. Loan books decreased from €4.28bn at the end of 2021.

They had €3.69bn in deposits at the end of December 2022, much of it (88%) held by Russian banks. Total deposits were €2.37bn at the end of 2021.

Luxembourg investment funds had exposure of €1.23bn to Russian residents, about 0.02% of their total assets, at the end of 2022. That compared to €18bn, or 0.26% of total assets in Luxembourg-domiciled investment funds, at the end of 2021.

Equities made up more than half (57%) of assets and debt securities made up more than a third (35%), as of 31 December 2022.

“It should be noted that money market funds have no exposure to residents of the Russian Federation,” the central bank on 17 February 2023.