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ZURICH, July 8 (Reuters) – Russia’s Gazprombank is checking out strategic options for its Swiss enterprise, which include a doable sale of all or parts of it, Zurich-based mostly Gazprombank Switzerland said on Friday.
Gazprombank (GZPRI.MM) is one particular of the final remaining channels for financing trade flows between Russia and Switzerland due to the fact the other important Russian banking companies are issue to sanctions over Moscow’s invasion of Ukraine.
Its Swiss small business, which employs about 80 persons, is generally active in trade and export financing, which includes encouraging Swiss industrial groups finance exports to Jap Europe. It also funds the extraction, transport and processing of raw materials from Russia to Western Europe for commodity traders.
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“The Bank now expects to conclude the strategic assessment process – including locating an investor if such alternative is pursued – by the end of the third quarter of 2022,” it stated.
Centered on equity of about 200 million Swiss francs, the financial institution could be valued at close to 150 million Swiss francs ($154 million), just one industry supply, who declined to be named, said.
Feasible customers for areas or all of Gazprombank could be fiscal buyers or other financial institutions, a Gazprombank Switzerland spokesperson stated, declining to remark on a valuation.
Commodity traders could also be interested in Gazprombank Switzerland, the marketplace source instructed Reuters, and the very first potential potential buyers have by now expressed interest.
“It is the accountability of the Board of Administrators to routinely evaluation the strategic orientation of a bank and to realign the small business model if essential,” the spokesperson claimed when requested whether or not current or opportunity international sanctions had brought on the strategic assessment.
Asked about any feasible affect from the Swiss Financial Market place Supervisory Authority FINMA, the financial institution spokesperson stated: “The initiated method overview is in the bank’s have interest and not thanks to exterior force.”
Gazprombank Switzerland was strongly capitalised and operationally properly positioned, the spokesperson additional.
According to the latest publicly obtainable facts, Gazprombank Switzerland made a income of 3 million francs in the first 50 % of 2021, down from 4 million in the calendar year-in the past period of time.
Gazprombank is not the only Swiss subsidiary of a important Russian lender that may possibly quickly change arms.
FINMA has eased the limits in opposition to Sberbank (Switzerland) AG (SBER.MM). This would make it possible for the bank to decrease its harmony sheet in see of a doable sale or change of possession, the watchdog reported this month. read through extra
($1 = .9744 Swiss francs)
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Reporting by Oliver Hirt, Creating by Michael Shields, Editing by Paul Carrel and Alexander Smith
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