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

ZURICH, July 8 (Reuters) – Russia’s Gazprombank is checking out strategic alternatives for its Swiss organization, which include a probable sale of all or sections of it, Zurich-primarily based Gazprombank Switzerland mentioned on Friday.

Gazprombank (GZPRI.MM) is a single of the final remaining channels for financing trade flows involving Russia and Switzerland since the other big Russian financial institutions are issue to sanctions more than Moscow’s invasion of Ukraine.

Its Swiss small business, which employs about 80 men and women, is generally active in trade and export funding, like supporting Swiss industrial groups finance exports to Eastern Europe. It also funds the extraction, transportation and processing of uncooked elements from Russia to Western Europe for commodity traders.

“The Financial institution at the moment expects to conclude the strategic review system – which includes finding an trader if these alternative is pursued – by the finish of the 3rd quarter of 2022,” it stated.

Dependent on equity of about 200 million Swiss francs, the bank could be valued at about 150 million Swiss francs ($154 million), one sector resource, who declined to be named, explained.

Doable buyers for elements or all of Gazprombank could be money investors or other banks, a Gazprombank Switzerland spokesperson explained, declining to comment on a valuation.

Commodity traders could also be intrigued in Gazprombank Switzerland, the industry resource explained to Reuters, and the to start with likely consumers have presently expressed curiosity.

“It is the duty of the Board of Directors to often evaluate the strategic orientation of a bank and to realign the company design if essential,” the spokesperson said when requested no matter if existing or potential worldwide sanctions experienced activated the strategic overview.

Questioned about any doable influence from the Swiss Monetary Market Supervisory Authority FINMA, the bank spokesperson said: “The initiated system review is in the bank’s own fascination and not due to exterior strain.”

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

In accordance to the most up-to-date publicly accessible data, Gazprombank Switzerland produced a revenue of 3 million francs in the initial fifty percent of 2021, down from 4 million in the year-in the past period of time.

Gazprombank is not the only Swiss subsidiary of a big Russian financial institution that may well before long alter fingers.

FINMA has eased the limitations from Sberbank (Switzerland) AG (SBER.MM). This would enable the lender to reduce its equilibrium sheet in check out of a possible sale or adjust of possession, the watchdog claimed this thirty day period. go through more

($1 = .9744 Swiss francs)

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

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