UPDATE: CEO says VEB sees Globexbank, Sviaz-Bank merger as only option

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MOSCOW, Mar 12 (PRIME) – A merger between affiliates of Vnesheconombank (VEB), Sviaz-Bank and Globexbank, is their only development scenario considered by VEB, CEO Sergei Gorkov told reporters on Monday.

“I think that this (scenario) is virtually the only one because a merger between these banks would optimize to a significant extent, there is no point in keeping the banks in their current state,” Gorkov said.

He also said that VEB has not considered this option before because it wanted to sell the affiliates. The bank does not rule out finding an investor in the merged affiliate later.

The issue will be considered by the supervisory board of VEB in April, Gorkov said.

The official also said that prolongation of the Ukrainian sanctions against the affiliates of Russian state banks will not affect VEB activities.

Last week Kiev prolonged the sanctions against local units of Russian banks Sberbank and VTB Bank, and their subsidiaries VS Bank and BM Bank, respectively, as well as against VEB’s Prominvestbank for one year. The sanctions prohibit any financial operations in favor of the affiliated entities, including the parent companies.

Gorkov said earlier that VEB planned to close the sale of Prominvestbank until May 1.

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