The accounts of Germany's Goethe Institute have been frozen in Russia, the German Foreign Ministry said on Friday, following a threat by Moscow to retaliate against measures taken to curb its own cultural institute in Berlin.
"I can confirm that the accounts of the Goethe Institute in Russia have been blocked," the ministry spokesperson said at a regular government conference.
A source familiar with the situation confirmed that the institute's accounts at the Russian unit of one major bank had been blocked.
The Russian central bank was not immediately available for comment on the matter when contacted by Reuters.
In January, Russian Foreign Ministry spokeswoman Maria Zakharova threatened reciprocal measures after Germany froze the accounts of Russky Dom, or "Russian House", and Berlin prosecutors launched an investigation into the organisation.
The Russian cultural promotion organisation is part of a government agency subject to European Union sanctions.
Zakharova said at the time that "reciprocal measures against subsidiaries of the Goethe Institute in Moscow, St Petersburg and Novosibirsk will be forthcoming, unless the situation around the Russian House of Science and Culture in Berlin is normalised".
The Goethe Institute is partially funded by the German Foreign Ministry and is the country's main organisation for promoting cultural policy abroad. It has locations in 98 countries, where it offers German language courses and cultural events.
On its website, the Goethe Institute says: "We do not break off democratic dialogue, even in difficult times. In our work we orientate ourselves towards the values of a democratic, liberal society governed by the rule of law."
(Reporting by Andreas Rinke; Writing by Rachel More; Editing by Matthias Williams)