UPDATE: Russia to turn Promsvyazbank into bank for defense order - News Archive - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

UPDATE: Russia to turn Promsvyazbank into bank for defense order

(Adds paragraphs 3-7)

MOSCOW, Jan 19 (PRIME) -- A bank intended for the defense order and other large-scale state procurement operations will be established on the basis of troubled Promsvyazbank and will be headed by the Russian Export Center CEO Pyotr Fradkov, Finance Minister Anton Siluanov told reporters on Friday.

On Thursday, the ministry said that the government would create a bank to handle state defense order and large state contracts, including provision of banking support, settlements with contractors or defense companies, and provision of loans to defense companies, in the conditions of Western sanctions.

A spokesperson for the central bank told PRIME that additional funds will be injected into PromsvyazbankТs capital. It will be moved under state ownership in January-March, but will continue standard banking operations along with its new functions.

Maxim Osadchy, director of the research department at Corporate Finance Bank, said that the bank will need 200-300 billion rubles of capital before it can be turned into a defense and state procurement bank and added that the central bank is likely to transfer the bank under state control without any payment.

Senior Director of the banking research group at global rating agency Fitch Alexander Danilov told PRIME that the decision may trigger Western sanctions against Promsvyazbank.

УThe sanctions may be extended to any individual or legal entity involved in significant transactions with companies of RussiaТs defense industry. Provision of support to defense contracts is likely to be recognized such significant transactions,Ф he said.

Director for banking rating at RAEX Ruslan Korshunov said that Promsvyazbank may merge with state industrial giant RostecТs Novikombank or any other large bank before it is turned into a state bank to service the defense industry.

Promsvyazbank, a top-10 bank by assets, has been undergoing bailout procedures led by the central bank since mid-December.


19.01.2018 15:11
Share |
To report an error select text and press Ctrl+Enter
Central Bank Official Rate
1W 1M 1Y
EUR 73.4989 -0.4777 22 aug
USD 66.2630 -0.5210 22 aug
Stock Market Indices
1D 1W 1M 1Y
rtsi 1282.33 +0.17 12:10 22 aug
micex 2669.61 -0.16 12:10 22 aug
Stock Quotes in RUR
1D 1W 1M 1Y
gazp 232.71 +0.64 11:54 22 aug
lkoh 5247.50 -0.58 11:54 22 aug
rosn 408.10 -0.56 11:54 22 aug
sber 218.75 +0.06 11:54 22 aug
MICEX Ruble Trading
1D 1W 1M 1Y
EURTD 73.1525 -0.6425 14:59 22 aug
USDTD 65.8975 -0.7625 17:44 22 aug