Sberbank could allocate frozen assets in 2024 or 2025, considers both scenarios equally likely

VLADIVOSTOK. Sept 4 (Interfax) - Sberbank plans to complete operation to allocate frozen assets by the end of this year or in 2025, assessing the options as 50/50, Taras Skvortsov, Sberbank senior vice president and director of the finance department, said.

"The process is underway. We have a fairly good discussion with the regulator, and we are moving forward gradually. The length of time is owing to the fact that we, along with the regulator, are going through this for the first time. Considering that the law was originally set to expire this year, we, of course, planned to do it this year. However, a decision has now been reached that it will be extended to 2025-2026, so there is no longer this radical urgency, no deadlines for us," Skvortsov told journalists on the sidelines of the Eastern Economic Forum.

"We have not received an official final answer yet, because certain talks are continuing. I also think that we will do it somewhere at 50/50 this year, or it will be postponed until next year," Skvortsov said.

Federal law No. 292-FZ entered into force in the summer of 2022, allowing sanctioned banks to reorganize, to form a new legal entity and to transfer to it both assets frozen owing to restrictions, as well as liabilities from obligations to foreign creditors. All debt payments to non-resident clients would subsequently be performed using only the assets of the new company. This right was initially valid through December 31, 2024, but was later extended until the end of 2026.