Regulator of Latvia took control of the sale of Ukrainian “daughter” of Sberbank

The Commission on Finance and capital markets (FCMC is received) of Latvia engaged in, among other things, oversight over observance by financial market participants of the sanctions regime, has taken control of the sale of Ukrainian “daughter” of Sberbank of the Latvian-Belarusian consortium controlled Russian-British businessmen by Gregory Guselnikov and said Gutseriev. About the transaction that was in emergency mode due to the Ukrainian sanctions and Russia’s largest state Bank said on Monday, March 27. The consortium included the Latvian Norvik Banka (owned Guselnikova) and an unnamed Belarusian company (owned by Gutseriev). The closing of the transaction scheduled for the first half of 2017.

The FCMC is received closely following the implementation of the transaction, it follows from the review of the Commission placed at the disposal . “The FCMC is received evaluates such significant transaction from the point of view of stability of the credit institution and its impact on operating results, reputation and the Bank’s compliance with all the binding regulatory acts, including financial sanctions, — stated in the commentary. — The FCMC is received considers that the proposed transaction is significant for the Bank [Norvik] and should be carefully assessed not only from the point of view of development [the Bank], but also from the point of view of risk.”

Two sources familiar with the negotiations, reported earlier that Sberbank was to agree on a deal in the four bodies — the national Bank of Ukraine, Antimonopoly service of Ukraine, the State securities Commission of Ukraine and the national Bank of Latvia. The national Bank of Ukraine reported yesterday that he had not received official notification from potential investors regarding the purchase, PJSC “Sberbank” (Kiev). The national Bank of Latvia and Ukraine “in accordance with international best practices” will begin consultations on this transaction, specifies a press-service of FCMC is received.

In mid-March, the President of Ukraine Petro Poroshenko has approved the proposal of the national Bank of Ukraine on introduction of sanctions against five banks with Russian state capital for a period of one year. One of them became subsidiaries of Russian state-owned banks: two banks, Sberbank (the”Sberbank Ukraine” and PJSC “Vs Bank”), two of the VTB group (VTB Bank and BM Bank), HVB Ukraine (controlled by Vnesheconombank). The remaining two Russian banks — Alfa-Bank (enters in “the alpha-Groups”) and Forward the Bank (shareholder of the Bank “Russian standard”) sanctions are not affected. Among the imposed restrictions — the ban on banks to withdraw funds outside the country. The national Bank of Ukraine explained their initiative by the need to maintain financial stability and a desire to prevent the withdrawal of capital. After that, Sberbank and VTB has announced plans for the sale of its Ukrainian assets.

Sberbank expects to close the sale of Ukrainian “daughter” until the end of may 2017, reported on Wednesday to journalists a source in Bank, the correspondent . “We are ready to close the deal as quickly as regulators will give us your permission. To expect that we will receive regulatory permission faster than within one month after submission, it is hardly realistic, therefore, we think that the deal will be closed in the period from late April to late may is our optimistic plans,” the source said. “We hope that if they obtained all the necessary permissions and the Bank has replaced the owner, his attitude will be lifted not only the sanctions imposed by Ukraine and the sanctions imposed by the European Union and the United States, which are now applied not only to the savings Bank of Russia, but also to its subsidiaries,” — said the source in the savings Bank.

VTB group expects to sell Ukrainian subsidiary, BM Bank until the end of June 2017, the asset claimed by the two groups of buyers. The journalists said the first Deputy Chairman of the management Board of VTB Bank Yury Solovyev, reports TASS. Vnesheconombank (VEB) expects to identify a buyer for its Ukrainian “daughter” Prominvestbank — until the end of March, said the head of state Corporation Sergey Gorkov March 20. According to him, among the possible buyers — Hungarian banking group OTP.