Sparkasse Hannover has reportedly blocked payments to Gerhard Schroeder originating from sources believed to be connected to Russia.
Bild reported on Sunday that a German bank has restricted former Chancellor Gerhard Schroeder’s account due to concerns that some payments might be linked to Russia. This action reportedly occurred even though Schroeder is not subject to any sanctions.
According to the report, Sparkasse Hannover, Schroeder’s longtime local bank, has frozen incoming transfers related to his business dealings with Russia. The restrictions reportedly affect nearly half a million euros annually, which Schroeder allegedly receives for his position on the board of Nord Stream 2, a pipeline project owned by Russian energy giant Gazprom.
The pipeline, designed to transport Russian gas directly to Germany, was completed in 2021 but never became operational due to EU sanctions related to the Ukraine conflict. In 2022, it sustained significant damage in an act of sabotage that Moscow attributes to Western intelligence agencies.
Bild reports that Sparkasse Hannover stated in a letter to Schroeder that it feared violating international financial restrictions, particularly those imposed by the US on Russian energy entities. The funds were supposedly channeled through a Gazprombank account in Luxembourg but have since been returned after Sparkasse’s internal review raised concerns about potential exposure to secondary US sanctions. When asked for comment by Bild, the bank declined to comment on individual accounts.
Despite the freeze, Schroeder has not been sanctioned by the EU, UK, or US. However, according to Bild, the bank’s decision to suspend certain transfers occurred shortly after Hanover Mayor Belit Onay, a member of the Green Party and a vocal critic of Schroeder, became chairman of the Sparkasse board. Onay had previously called for Schroeder to be stripped of his honorary citizenship, arguing that his ongoing business ties with Russia were incompatible with the city’s values.
Schroeder was German chancellor from 1998 to 2005 and developed close relationships with Russian President Vladimir Putin during his time in office. After leaving office, he accepted senior positions in several Russian energy companies.
Following the escalation of the Ukraine conflict, Schroeder faced increasing political pressure due to his perceived ties with Russia. In 2022, the German parliament revoked his government-funded office, and there were unsuccessful attempts within his own SPD party to expel him.
Schroeder has criticized Western policymakers for underestimating the dangers of the Ukraine crisis escalation, while also maintaining that Russia’s historical security concerns should be respected. Bild reports that the former chancellor continues to view Nord Stream as beneficial for Germany, citing the need for affordable and reliable energy supplies.
“`