Baiterek could sell Sberbank subsidiary in Kazakhstan to foreign investor

NUR-SULTAN. Sept 13 (Interfax) - National Managing Holding Company Baiterek, which earlier bought the subsidiary of Russia's Sberbank in Kazakhstan, is set to search for new buyers with a preference for foreign investors.

"Our goal is to make sure the bank operates smoothly. The talks on removing the bank from the sanctions lists will be easy to hold if state shareholders join the bank. As soon as the bank starts working steadily, we will begin searching for strategic investors," Baiterek head Kanat Sharlapayev said in an interview with Kazakh journalist Dmitry Shishkin on Telegram.

Sharlapayev said he would give preference to a foreign investor.

"Obviously it's not only my opinion that counts, but I would give preference to a foreign investor to increase competition among the players in the financial market," Sharlapayev said.

Russia's Sberbank sold its subsidiary in Kazakhstan to the Baiterek holding at the beginning of September.

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

The Kazakhstan-based subsidiaries of the Russian banks VTB, Alfa-Bank, and Sberbank were added to the U.S. sanctions list in March of this year. Kazakhstan's Bank CenterCredit completed the acquisition of 100% of Alfa-Bank's subsidiary in Kazakhstan at the beginning of May 2022. Blocking sanctions imposed by the United States have affected the international business of Sberbank, including its subsidiary in Kazakhstan.

Sberbank Kazakhstan ranked eighth by assets among 22 second-tier banks operating in Kazakhstan as of August 1, according to the National Bank.

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.