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

ZURICH, July 8 (Reuters) – Russia’s Gazprombank is discovering strategic solutions for its Swiss enterprise, together with a attainable sale of all or areas of it, Zurich-based mostly Gazprombank Switzerland reported on Friday.

Gazprombank (GZPRI.MM) is a single of the past remaining channels for financing trade flows concerning Russia and Switzerland mainly because the other significant Russian financial institutions are subject to sanctions above Moscow’s invasion of Ukraine.

Its Swiss business, which employs about 80 folks, is mainly energetic in trade and export financing, such as helping Swiss industrial groups finance exports to Japanese Europe. It also funds the extraction, transport and processing of uncooked elements from Russia to Western Europe for commodity traders.

“The Bank currently expects to conclude the strategic review method – which includes acquiring an investor if these types of choice is pursued – by the conclusion of the third quarter of 2022,” it reported.

Centered on fairness of about 200 million Swiss francs, the lender could be valued at around 150 million Swiss francs ($154 million), just one industry source, who declined to be named, said.

Possible buyers for areas or all of Gazprombank could be economic traders or other banking institutions, a Gazprombank Switzerland spokesperson mentioned, declining to comment on a valuation.

Commodity traders could also be intrigued in Gazprombank Switzerland, the industry source instructed Reuters, and the initial prospective customers have by now expressed desire.

“It is the responsibility of the Board of Administrators to on a regular basis critique the strategic orientation of a bank and to realign the business enterprise product if vital,” the spokesperson reported when questioned regardless of whether present or possible worldwide sanctions experienced brought on the strategic review.

Requested about any achievable influence from the Swiss Monetary Market place Supervisory Authority FINMA, the lender spokesperson explained: “The initiated strategy critique is in the bank’s very own desire and not due to exterior force.”

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

According to the newest publicly available details, Gazprombank Switzerland manufactured a earnings of 3 million francs in the very first half of 2021, down from 4 million in the 12 months-back time period.

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

FINMA has eased the constraints towards Sberbank (Switzerland) AG (SBER.MM). This would make it possible for the financial institution to reduce its harmony sheet in see of a doable sale or adjust of possession, the watchdog stated this month. examine additional

($1 = .9744 Swiss francs)

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

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