Russia’s Gazprombank explores options for Swiss business, including sale

George T. Taft

ZURICH, July 8 (Reuters) – Russia’s Gazprombank is discovering strategic possibilities for its Swiss business, including a probable sale of all or sections of it, Zurich-based mostly Gazprombank Switzerland said on Friday.

Gazprombank (GZPRI.MM) is 1 of the previous remaining channels for funding trade flows between Russia and Switzerland mainly because the other main Russian financial institutions are issue to sanctions in excess of Moscow’s invasion of Ukraine.

Its Swiss small business, which employs about 80 people today, is mostly energetic in trade and export funding, such as serving to Swiss industrial teams finance exports to Japanese Europe. It also finances the extraction, transport and processing of raw elements from Russia to Western Europe for commodity traders.

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“The Financial institution at present expects to conclude the strategic review process – which include locating an trader if this kind of option is pursued – by the end of the third quarter of 2022,” it mentioned.

Primarily based on fairness of about 200 million Swiss francs, the financial institution could be valued at all-around 150 million Swiss francs ($154 million), 1 industry supply, who declined to be named, explained.

Achievable prospective buyers for areas or all of Gazprombank could be money investors or other financial institutions, a Gazprombank Switzerland spokesperson mentioned, declining to remark on a valuation.

Commodity traders could also be intrigued in Gazprombank Switzerland, the field supply advised Reuters, and the very first possible buyers have previously expressed fascination.

“It is the duty of the Board of Administrators to on a regular basis critique the strategic orientation of a financial institution and to realign the small business product if needed,” the spokesperson reported when asked whether existing or potential worldwide sanctions experienced triggered the strategic critique.

Requested about any probable impact from the Swiss Monetary Market place Supervisory Authority FINMA, the lender spokesperson explained: “The initiated approach assessment is in the bank’s possess fascination and not due to exterior strain.”

Gazprombank Switzerland was strongly capitalised and operationally properly positioned, the spokesperson included.

In accordance to the hottest publicly offered facts, Gazprombank Switzerland manufactured a revenue of 3 million francs in the initial fifty percent of 2021, down from 4 million in the year-back period.

Gazprombank is not the only Swiss subsidiary of a major Russian lender that may soon alter arms.

FINMA has eased the limits versus Sberbank (Switzerland) AG (SBER.MM). This would allow for the financial institution to decrease its balance sheet in see of a probable sale or improve of ownership, the watchdog mentioned this month. study extra

($1 = .9744 Swiss francs)

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Reporting by Oliver Hirt, Writing by Michael Shields, Editing by Paul Carrel and Alexander Smith

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