UPDATE2: CEO: VEB sees 2017 IFRS net loss much below 305 bln rbl

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GORKI, Moscow Region, Jan 22 (PRIME) -- Russia’s state-owned Vnesheconombank (VEB) expects its 2017 net loss to be significantly below the planned 305 billion rubles, as calculated under International Financial Reporting Standards (IFRS), CEO Sergei Gorkov told reporters on Monday.

“We will have losses as we’ve planned. The only thing is that losses will be significantly lower than planned. Because our planned (losses) are 305 billion rubles, we will have them significantly below,” he said.

The final results will be released after February, he said.

In January–September, VEB’s IFRS net loss widened 28.1% to 110.4 billion rubles, the bank said earlier.

In 2016, VEB had a net loss of 111.9 billion rubles.

Gorkov also said that VEB’s management will submit a development strategy for subsidiaries Sviaz-Bank and Globexbank at the next meeting of the supervisory board. The banks were previously considered as a possible basis for creation of a bank for the defense order. The Finance Ministry recently announced it will establish such a bank around troubled Promsvyazbank.

VEB is also holding talks to sell its Ukrainian unit Prominvestbank, Gorkov said.

“We have many talks on the Ukrainian part, because we believe that we should leave Ukraine. The process is not that easy. We are currently in various talks,” he said.

It has held talks with the National Bank of Ukraine and is currently waiting for a response, he added.

VEB provided 188 billion rubles worth of loans in 2017, including over 98 billion rubles allocated for the development of strategic industries, the bank said citing Gorkov.

(56.5892 rubles – U.S. $1)

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