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

ZURICH, July 8 (Reuters) – Russia’s Gazprombank is checking out strategic solutions for its Swiss small business, which include a feasible sale of all or parts of it, Zurich-dependent Gazprombank Switzerland claimed on Friday.

Gazprombank (GZPRI.MM) is a single of the previous remaining channels for financing trade flows among Russia and Switzerland for the reason that the other major Russian banking companies are issue to sanctions about Moscow’s invasion of Ukraine.

Its Swiss small business, which employs about 80 persons, is mostly active in trade and export funding, together with helping Swiss industrial groups finance exports to Eastern Europe. It also finances the extraction, transport and processing of raw materials from Russia to Western Europe for commodity traders.

“The Bank at the moment expects to conclude the strategic assessment course of action – like finding an trader if this kind of selection is pursued – by the finish of the 3rd quarter of 2022,” it mentioned.

Based mostly on equity of about 200 million Swiss francs, the financial institution could be valued at all-around 150 million Swiss francs ($154 million), just one market source, who declined to be named, reported.

Doable potential buyers for sections or all of Gazprombank could be fiscal traders or other financial institutions, a Gazprombank Switzerland spokesperson explained, declining to remark on a valuation.

Commodity traders could also be interested in Gazprombank Switzerland, the market supply explained to Reuters, and the very first potential consumers have by now expressed fascination.

“It is the duty of the Board of Directors to regularly assessment the strategic orientation of a bank and to realign the business product if needed,” the spokesperson claimed when questioned whether or not existing or prospective global sanctions had triggered the strategic critique.

Asked about any achievable influence from the Swiss Financial Market place Supervisory Authority FINMA, the financial institution spokesperson explained: “The initiated approach evaluate is in the bank’s very own desire and not owing to external force.”

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

According to the most current publicly out there information and facts, Gazprombank Switzerland built a earnings of 3 million francs in the very first 50 % of 2021, down from 4 million in the yr-back period.

Gazprombank is not the only Swiss subsidiary of a key Russian lender that may possibly quickly change fingers.

FINMA has eased the restrictions versus Sberbank (Switzerland) AG (SBER.MM). This would permit the lender to lower its balance sheet in perspective of a possible sale or modify of ownership, the watchdog stated this month. study additional

($1 = .9744 Swiss francs)

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

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