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

ZURICH, July 8 (Reuters) – Russia’s Gazprombank is checking out strategic alternatives for its Swiss enterprise, which includes a feasible sale of all or sections of it, Zurich-dependent Gazprombank Switzerland mentioned on Friday.

Gazprombank (GZPRI.MM) is one of the last remaining channels for funding trade flows amongst Russia and Switzerland simply because the other important Russian banks are topic to sanctions about Moscow’s invasion of Ukraine.

Its Swiss business enterprise, which employs about 80 people today, is mainly active in trade and export funding, like aiding Swiss industrial groups finance exports to Japanese Europe. It also finances the extraction, transport and processing of uncooked materials from Russia to Western Europe for commodity traders.

“The Bank presently expects to conclude the strategic evaluate procedure – such as acquiring an trader if these choice is pursued – by the conclusion of the 3rd quarter of 2022,” it said.

Based on fairness of about 200 million Swiss francs, the financial institution could be valued at around 150 million Swiss francs ($154 million), one industry resource, who declined to be named, mentioned.

Possible purchasers for elements or all of Gazprombank could be money traders or other financial institutions, a Gazprombank Switzerland spokesperson explained, declining to comment on a valuation.

Commodity traders could also be fascinated in Gazprombank Switzerland, the field resource told Reuters, and the 1st prospective potential buyers have presently expressed interest.

“It is the accountability of the Board of Directors to on a regular basis overview the strategic orientation of a financial institution and to realign the business product if required,” the spokesperson claimed when questioned regardless of whether current or opportunity intercontinental sanctions had triggered the strategic assessment.

Requested about any attainable impact from the Swiss Monetary Sector Supervisory Authority FINMA, the lender spokesperson said: “The initiated method review is in the bank’s possess interest and not owing to external force.”

Gazprombank Switzerland was strongly capitalised and operationally effectively positioned, the spokesperson additional.

According to the most up-to-date publicly out there details, Gazprombank Switzerland built a gain of 3 million francs in the first 50 % of 2021, down from 4 million in the year-back period of time.

Gazprombank is not the only Swiss subsidiary of a major Russian lender that may well before long alter palms.

FINMA has eased the restrictions from Sberbank (Switzerland) AG (SBER.MM). This would permit the bank to decrease its harmony sheet in see of a feasible sale or modify of ownership, the watchdog mentioned this month. study more

($1 = .9744 Swiss francs)

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

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