Russian central bank's sale of Otkritie to VTB to go through this year -Finance Minister
Reuters
Published Dec 06, 2022 13:54
MOSCOW (Reuters) - The Russian central bank's deal to sell bailed-out lender Otkritie to state bank VTB should be finalised by the end of the year, Deputy Finance Minister Alexei Moiseev told reporters on Tuesday.
Russian lawmakers have been considering draft legislation that would give the banks and the regulator until the end of 2023 to complete the deal without needing to hold a competitive tender or seek approval from Russia's competition authorities.
Asked if the sale would now be postponed until next year, Moiseev said he expected the deal to close in December and said: "the necessary processes are underway".
The central bank, VTB and Otkritie did not immediately respond to requests for comment.
Russia's parliament set a year-end deadline for the deal when it approved legislation in March to help it pass with minimum bureaucracy.
Both VTB and Otkritie have been targeted with Western sanctions over Russia's actions in Ukraine.
The central bank bailed out Otkritie, once Russia's largest private lender, in 2017 as part of a years-long campaign to clean up Russia's banking sector.
For foreign banks looking to offload assets, the process is more complicated.
"A deal can only be approved by government commission, only if there is direct interest from Russian beneficiaries," Moiseev said.
An Aug. 5 decree, signed by President Vladimir Putin, banned investors from so-called unfriendly countries from selling shares in key energy projects and banks until the end of the year, unless given special approval.
Putin last month gave approval for Russian carmaker Avtovaz to buy RN Bank, a joint venture between Italian lender UniCredit (LON:0RLS) and the Renault-Nissan-Mitsubishi Alliance, a rare sale of a foreign-owned strategic asset.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.