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

ZURICH, July 8 (Reuters) – Russia’s Gazprombank is exploring strategic solutions for its Swiss company, like a possible sale of all or sections of it, Zurich-based Gazprombank Switzerland mentioned on Friday.

Gazprombank (GZPRI.MM) is 1 of the final remaining channels for financing trade flows in between Russia and Switzerland for the reason that the other key Russian banking companies are matter to sanctions about Moscow’s invasion of Ukraine.

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

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“The Financial institution at this time expects to conclude the strategic assessment procedure – together with obtaining an trader if this kind of possibility is pursued – by the end of the third quarter of 2022,” it claimed.

Centered on equity of about 200 million Swiss francs, the bank could be valued at all over 150 million Swiss francs ($154 million), 1 sector resource, who declined to be named, said.

Feasible consumers for components or all of Gazprombank could be financial buyers or other banks, a Gazprombank Switzerland spokesperson reported, declining to remark on a valuation.

Commodity traders could also be fascinated in Gazprombank Switzerland, the marketplace source told Reuters, and the 1st likely prospective buyers have already expressed fascination.

“It is the accountability of the Board of Directors to routinely overview the strategic orientation of a bank and to realign the business enterprise product if vital,” the spokesperson stated when asked whether current or potential intercontinental sanctions experienced induced the strategic evaluate.

Requested about any possible impact from the Swiss Economical Marketplace Supervisory Authority FINMA, the lender spokesperson explained: “The initiated approach evaluation is in the bank’s personal desire and not due to external force.”

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

In accordance to the latest publicly available data, Gazprombank Switzerland made a revenue of 3 million francs in the 1st half of 2021, down from 4 million in the 12 months-in the past period of time.

Gazprombank is not the only Swiss subsidiary of a important Russian financial institution that may possibly shortly change fingers.

FINMA has eased the restrictions versus Sberbank (Switzerland) AG (SBER.MM). This would permit the bank to reduce its harmony sheet in watch of a probable sale or change of possession, the watchdog said this thirty day period. browse additional

($1 = .9744 Swiss francs)

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

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