14 Dec 2022 13:38

Promsvyazbank could buy SMP Bank by end-2022 - dep finance minster

KASIMOV. Dec 14 (Interfax) - Promsvyazbank (PSB) could buy Northern Sea Route Bank (SMP Bank) before the end of 2022, Deputy Russian Finance Minister Alexei Moiseyev told reporters.

"This year, I hope," he said, when asked when the deal might take place.

"We're entering the home straight," he said.

A valuation has already been carried out, Moiseyev said.

PSB is owned by the Russian state through the Federal Property Agency. It has been turned into a bank for serving major government contracts and defense contracts. PSB already has experience acquiring other banks, as it bought Sviaz Bank from VEB in December 2019 and 100% of bailed-out Roscosmosbank from state corporation Roscosmos in December 2020. Moscow Industrial Bank is expected to be merged into PSB by May 2023. Also, the Central National Bank of the DPR and the State Bank of the LPR operating in the Donetsk and Lugansk people's republics will become limited liability companies, and then the republics' administrations will ensure the sale to PSB of 100% of the shares in these banks "at a market value of 1 ruble."

SMP Bank is the parent of the banking group of the same name, which includes the insurance company SMP Insurance LLC, and has been managing the financial turnaround of Mosoblbank since May 2014. The key shareholders of the bank were the brothers Arkady and Boris Rotenberg, as of 2021.

PSB and SMP Bank are subject to U.S. blocking sanctions. Their assets are frozen in the United States, and American citizens are banned from conducting any transactions with the bank.