7 Jun 2022 15:48

CBR could tighten control over process of changes in ownership of Russian banks - draft bill

MOSCOW. June 7 (Interfax) - The Central Bank of Russia (CBR) could be given authority to establish additional requirements for purchasers of Russian banks and non-credit financial organizations as well as additional requirements for the procedure for such transactions.

The relevant amendments are contained in a draft law prepared by the Ministry of Economic Development and seen by Interfax.

In particular, the bill empowers the CBR's Board of Governors to establish requirements for persons (and their controllers) purchasing shares of banks and non-credit financial institutions other than those set out in the laws and regulations of the Central Bank. The regulator will also be able to establish additional requirements to the procedure for acquiring shares or stakes in such organizations.

After the outbreak of the military conflict in Ukraine, a number of major international financial groups announced plans to withdraw from the Russian market. For example, France's Societe Generale sold its Russian business to Vladimir Potanin's Interros group, while the Czech PPF group in mid-May concluded an agreement to sell its banking assets and subsidiaries in Russia to a group of Russian individual investors headed by the former head of RTS, Ivan Tyrishkin (at the moment, Home Credit has reduced its stake in HCF Bank to a controlling one). Negotiations for the sale of Russian subsidiaries are being conducted by Italy's UniCredit Group and American Citi.