Sberbank sells Kazakh subsidiary to Baiterek Holding

MOSCOW. Sept 2 (Interfax) - Sberbank has sold its subsidiary in Kazakhstan to the Baiterek holding.

The Russian bank said in a statement that the deal had been closed. It was concluded on "mutually acceptable financial terms and all regulatory approvals have been received," it said.

Sberbank Kazakhstan will continue to honor all its commitments to clients, and all terms on banking products for existing clients will be unchanged.

"The transaction will allow the bank to resume all active operations, attract deposits and make payments, as well as continue developing products and services for individuals and businesses. Rebranding of Sberbank Kazakhstan is planned in the near future," Sberbank said.

Baiterek Holding will endeavor to ensure the smooth operation of the Kazakh bank, and put favorable conditions in place to develop it said.

Sberbank said earlier it had decided to exit the Kazakh market owing to the current geopolitical situation and acting in the interests of the subsidiary bank's clients.

Baiterek is an integrated development institution set up to support entrepreneurship, develop the agro-industrial sector and provide housing. The Kazakh government is its ultimate beneficiary.

Blocking sanctions imposed by the United States have affected the international business of Sberbank, including its subsidiary in Kazakhstan.

"Over the past two years we have done a tremendous job, more than doubling our assets. Due to introduction of sanctions, our assets declined nearly twofold, that is, in two months we have actually drawn a line under the results of the last two years," Timur Kozintsev, Sberbank's senior vice president and head of Sberbank International, said in May.