Adjustment of Central Bank's approach to spinning off blocked assets makes this impracticable for Sberbank - CFO

MOSCOW. April 28 (Interfax) - The adjustment of the Central Bank of Russia's approach to banks spinning off blocked assets and liabilities as a separate legal entity makes this instrument impracticable for Sberbank , Sberbank CFO Taras Skvortsov said on a conference call with analysts.

Federal Law No. 292-FZ allows banks to create a special legal entity by the end of 2026 and transfer assets and liabilities frozen due to sanctions to their balance sheet. The Central Bank toughened its approach to banks spinning off blocked assets and liabilities at the end of last year.

"After last year, after such changes, let's say, adjustments by the Central Bank to what was included within the framework of Law 292, spin-offs... this instrument became immaterial, impracticable for us," Skvortsov said.

He said Sberbank was currently working with blocked assets under standard resolution processes. "And we see that one way or another, every quarter, within the framework of these initiatives and activities, we are managing to reduce the portfolio of blocked assets. It is constantly decreasing. And, in general, we will continue to do what we have been doing, regardless of whether we spin off any of this portfolio to a subsidiary. So to be honest we do not expect any big, radical changes or unexpected trends here," he said.