A state-owned British bank appears to have backed down from its threat to close the account of a television station accused of running propaganda for Vladimir Putin.

NatWest, a subsidiary of the Royal Bank of Scotland (RBS), sparked an outcry in Moscow after it sent a letter to to Russia Today which announced the closure of the broadcaster's British bank account. No reason was given.

It is understood that Moscow responded to the threat by claiming it would freeze the BBC's finances in Russia and report Britain to international watchdogs for violating Russia's right to freedom of speech.

Over the next 24 hours, the bank appeared to change its mind and announced in a later statement that the decision to close Russia Today's account was under review.

“These decisions are not taken lightly," an RBS spokesman said. "We are reviewing the situation and are contacting the customer to discuss this further. The bank accounts remain open and are still operative."