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

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

Gazprombank (GZPRI.MM) is a single of the past remaining channels for financing trade flows in between Russia and Switzerland for the reason that the other key Russian banking institutions are subject matter to sanctions about Moscow’s invasion of Ukraine.

Its Swiss business enterprise, which employs about 80 people today, is mostly energetic in trade and export financing, like helping Swiss industrial groups finance exports to Jap Europe. It also funds the extraction, transportation and processing of raw products from Russia to Western Europe for commodity traders.

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“The Bank presently expects to conclude the strategic critique approach – together with obtaining an trader if these types of choice is pursued – by the stop of the third quarter of 2022,” it claimed.

Based on equity of about 200 million Swiss francs, the lender could be valued at around 150 million Swiss francs ($154 million), a person market resource, who declined to be named, explained.

Doable buyers for components or all of Gazprombank could be monetary traders or other banking companies, a Gazprombank Switzerland spokesperson explained, declining to comment on a valuation.

Commodity traders could also be intrigued in Gazprombank Switzerland, the field supply advised Reuters, and the initial opportunity consumers have previously expressed curiosity.

“It is the accountability of the Board of Administrators to regularly assessment the strategic orientation of a financial institution and to realign the enterprise model if important,” the spokesperson mentioned when questioned no matter whether current or opportunity intercontinental sanctions experienced activated the strategic assessment.

Questioned about any achievable affect from the Swiss Money Industry Supervisory Authority FINMA, the financial institution spokesperson said: “The initiated tactic assessment is in the bank’s personal interest and not due to exterior pressure.”

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

In accordance to the hottest publicly out there information, Gazprombank Switzerland designed a profit of 3 million francs in the to start with 50 % of 2021, down from 4 million in the calendar year-back time period.

Gazprombank is not the only Swiss subsidiary of a significant Russian financial institution that may quickly improve palms.

FINMA has eased the constraints towards Sberbank (Switzerland) AG (SBER.MM). This would make it possible for the bank to reduce its stability sheet in view of a possible sale or modify of possession, the watchdog explained this thirty day period. read a lot more

($1 = .9744 Swiss francs)

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

Our Criteria: The Thomson Reuters Belief Ideas.