In mid-January, Credit Europe Bank, Russia’s largest Bank with Turkish capital, put up for sale, writes “Kommersant” with reference to sources in the banking market. According to sources, the reason for this decision was the deterioration of relations between Russia and Turkey.
Search of the buyer, according to the source “Kommersant”, has been specially selected for this investment Bank — Morgan Stanley.
The publication clarifies that the previously discussed sale of the Bank with a small discount to capital (it was $ 18.9 billion roubles under IFRS at the end of the first half of 2015, or 20.8 billion rubles under Russian accounting standards on January 1, 2016). Morgan Stanley to comment on the sale of the Bank to the edition refused. Credit Europe Bank does not discuss the actions of the Bank’s shareholders, and the shareholders in the person of the parent company Credit Europe Bank NV on request “Kommersant” has not replied.
As the newspaper notes, Credit Europe Bank is the largest volume of business in Russia the Bank with Turkish capital. 99.9% of the shares owned by Credit Europe Bank NV (the Netherlands), the ultimate beneficiary of which is a citizen of Turkey, Mustafa husny Ozyegin. The Bank operates in Russia since 1994 — then controlled by international financial group FIBA (also includes Dutch Bank) was opened in Russia a representative office under the name of Finansbank. Renamed in Credit Europe Bank in 2007.
As explained “Kommersant” Fitch analyst Dmitri Vasiliev, 2014, the Bank virtually ceased to increase retail portfolio. For 2014-2015 the portfolio of credits to individuals decreased by 43.7% to 57.7 billion rubles. Part of the corporate portfolio of the Turkish customers avoid maintenance problems, the Bank offset the balance of the parent structure. Thus interest to a potential buyer is not so much a portfolio of the credit institution, as its exclusive contracts with retailers to issue revolving credits on credit cards for purchases in a given network, says the publication.
These include two joint Bank opened in Russia in 2013, head group structure Credit Europe Bank NV jointly with the Auchan group (Oney Bank) and a group of “IKANO”, the furniture hypermarket “IKEA” (IKANO Bank).
Relations between Russia and Turkey escalated in November last year, when the Turkish air force was shot down on the Syrian-Turkish border Russian bomber su-24. Ankara stated that the Russian plane violated the airspace of Turkey, and its crew did not respond to the warning. In Moscow denied these accusations. The Russian President called Turkey’s actions a “stab in the back” from “posobnikov terrorists.” In response, Moscow from January 1 this year introduced a series of economic sanctions against Turkey. In the black list of Moscow, in particular, were of Turkish tomatoes and cucumbers, onions, strawberries, oranges and other fruits and vegetables. After the entry into force of the sanctions Turkey’s exports to Russia, by data for January 2016, fell by more than 60% in annual terms. In addition to the restrictions referred to work in Russia for Turkish companies. In this case, specifically, Turkish banks with the participation of the sanctions have not affected.