Infotech

War in Ukraine: Societe Generale ceases its banking and insurance activities in Russia



Posted Apr 11, 2022, 8:59 AMUpdated on Apr 11, 2022 at 9:00 am

It was an expected decision, but one that was long overdue. In the wake of BNP Paribas and Crédit Agricole, Societe Generale, which had continued its activities in Russia since the start of the invasion of Ukraine on February 24, announced that it would end them via the planned sale of its entire stake. in Rosbank.

Very involved in Russia, Societe Generale was exposed to the tune of 18.6 billion euros, including 15.4 billion for Rosbank. The group employs 12,000 people in Russia via this subsidiary.

Negative impact of 3.1 billion

In a press release released on Monday morning, the group indicates that it has signed “an agreement to sell its entire stake” in Rosbank, a heavyweight in the Russian banking sector in which it was a majority shareholder, as well as its insurance subsidiaries in Russia to the investment fund Interros Capital – the previous shareholder of Rosbank. “With this agreement, concluded after several weeks of intensive work, the group would withdraw in an effective and orderly manner from Russia while ensuring continuity for its employees and customers”, highlights the bank.

Societe Generale stresses that the “envisaged” transaction remains subject to the approval of the competent regulatory and competition law authorities, and that its finalization “should take place in the coming weeks”. In its accounts, this sale “should lead to a negative impact of 3.1 billion euros, or 2.2 billion in depreciation and 1.1 billion in exceptional items”.

SourceAFP

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