VTB not yet disclosing timeline for Rosgosstrakh sale, deal requires Central Bank approval - first deputy head

MOSCOW. April 25 (Interfax) - VTB is not yet ready to disclose details of the process for selling Rosgosstrakh , as the deal still requires regulatory approval, the first deputy head of the bank's management board Dmitry Pyanov said.

"Regarding Rosgosstrakh, we are indeed currently in the process of presenting this asset. I am not yet prepared to comment on the timeline or any details about potential buyers. We understand that the sale of an insurance business is highly regulated - it's practically the same as selling a bank. The regulator must approve the buyer, the purchase must be financed with the buyer's own funds, and there are many other conditions. For this reason, I cannot provide specifics on the timeline, pricing or names of buyers, including which markets they come from - because this is the sale of a heavily regulated business," Pyanov told journalists.

VTB President and Board Chairman Andrei Kostin said on Thursday that there are two potential buyers for Rosgosstrakh. "We want to sell, right now we have at least two buyers for Rosgosstrakh. It's a separate business. We've sold VTB Insurance to SOGAZ, and now we want to sell Rosgosstrakh, because the insurance business itself is very complex, is needs a huge amount of attention. And I think it would be right to hand it over to professional insurers," he said.

Rosgosstrakh has not yet been reflected as an asset held for sale in VTB's Q1 2025 financial statements, Pyanov said. "We assume that once legally binding purchase obligations arise, that will serve as the basis for the sale," he said.

There is more than one bidder for Rosgosstrakh, and no single buyer is currently the most likely candidate, Pyanov said.

Rosgosstrakh became part of the VTB Group as part of the deal to purchase Otkritie's assets in December 2022. The bank's management has said the insurance business is not complementary to VTB, but the group is not prepared to sell the asset at any price. Otkritie Bank owned more than 99% of Rosgosstrakh's capital, while minority shareholders owned less than 1%.

Regarding the prospects for selling other assets, VTB may divest a number of hotel properties in 2025, as there is significant interest from potential buyers, Pyanov said. The group also plans to sell real estate assets from the banks it has absorbed.

"The next category includes a number of private equity assets, which will also most likely be sold. It's important to understand that in the vast majority of cases, the primary motive for selling these assets is not profit generation - very often they will be sold at book value - but rather freeing up potential capital constraints due to the announced new regulations on immobilized assets coming into effect in 2026," Pyanov said.