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

ZURICH, July 8 (Reuters) – Russia’s Gazprombank is discovering strategic solutions for its Swiss organization, including a attainable sale of all or parts of it, Zurich-based mostly Gazprombank Switzerland claimed on Friday.

Gazprombank (GZPRI.MM) is a single of the last remaining channels for funding trade flows in between Russia and Switzerland due to the fact the other big Russian banks are issue to sanctions around Moscow’s invasion of Ukraine.

Its Swiss company, which employs about 80 men and women, is mainly active in trade and export funding, which include assisting Swiss industrial teams finance exports to Japanese Europe. It also funds the extraction, transportation and processing of uncooked components from Russia to Western Europe for commodity traders.

“The Bank at present expects to conclude the strategic review method – such as finding an investor if such alternative is pursued – by the conclusion of the 3rd quarter of 2022,” it mentioned.

Primarily based on fairness of about 200 million Swiss francs, the lender could be valued at all around 150 million Swiss francs ($154 million), a person sector resource, who declined to be named, explained.

Possible buyers for pieces or all of Gazprombank could be monetary investors or other financial institutions, a Gazprombank Switzerland spokesperson said, declining to remark on a valuation.

Commodity traders could also be intrigued in Gazprombank Switzerland, the market supply told Reuters, and the very first possible consumers have presently expressed interest.

“It is the obligation of the Board of Directors to often evaluate the strategic orientation of a financial institution and to realign the organization design if important,” the spokesperson stated when requested regardless of whether existing or possible global sanctions had triggered the strategic review.

Asked about any achievable affect from the Swiss Money Marketplace Supervisory Authority FINMA, the bank spokesperson claimed: “The initiated strategy critique is in the bank’s individual desire and not thanks to exterior stress.”

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

In accordance to the most current publicly readily available facts, Gazprombank Switzerland produced a earnings of 3 million francs in the 1st fifty percent of 2021, down from 4 million in the yr-in the past time period.

Gazprombank is not the only Swiss subsidiary of a significant Russian bank that may possibly soon adjust fingers.

FINMA has eased the limitations against Sberbank (Switzerland) AG (SBER.MM). This would make it possible for the bank to reduce its harmony sheet in watch of a probable sale or modify of possession, the watchdog stated this month. examine a lot more

($1 = .9744 Swiss francs)

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

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