Russia Uses Sberbank to Flex Its Financial Muscle

A quarter century ago, when communist regimes in central and eastern Europe tumbled one after another, the economically devastated Soviet Union could do nothing but watch. The USSR fell apart, and the eastern Europeans rushed to join the North Atlantic Treaty Organization and the European Union. Russia never gave up on its former sphere of influence. Now, instead of sending troops, it is building a web of economic ties with its old satellites.

Whether it’s bankrolling a Hungarian nuclear power plant or the construction of the South Stream pipeline in Bulgaria, Russian money is buying leverage in eastern Europe. Much of the region finds it increasingly counterproductive to act against Russia’s interests, even as the nation tangles with Ukraine. Hungarian, Slovak, and Czech politicians have openly opposed stricter EU sanctions against Russia, arguing their economies would bear a higher burden than their neighbors to the west.