The State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank) is in talks with several parties to sell its Ukrainian subsidiary Prominvestbank, as it plans to withdraw from Ukraine`s banking market by mid-2017, according to Vnesheconombank Chief Sergey Gorkov.
”The development bank should not be engaged in the management of commercial banks, it is not our mission. Our mission consists of high-tech redistributions. We should dispose of our commercial banks,” Gorkov said, during an interview with Russian news agency RIA Novosti.
In February this year, Vnesheconombank carried out an additional RUB 56.2 billion capitalization of Prominvestbank, followed by another RUB 4.2 billion in June. In late June, Gorkov stated that Russia`s Vnesheconombank was planning to intensify negotiations in autumn for the sale of its Ukrainian subsidiary.
Vnesheconombank`s chief recalled that the bank owns four commercial banks – Globexbank CJSC and Svyaz-Bank JSC in Russia, Prominvestbank in Ukraine, and BelVEB Bank OJSC in the Republic of Belarus. These banks have been classified as non-core assets, according to Vnesheconombank`s new strategy, and the bank is considering selling them.
”The issue of timing and the transfer depends on a specific market situation and the situation with potential buyers. We are negotiating a possible sale in Ukraine, though it is too early to talk about the timing, but we hope that early next year, or by mid-2017, we will be able to withdraw from the Ukrainian market,” Gorkov said.
According to Gorkov there are several parties interested in purchasing the Ukrainian-based asset.
Gorkov added that these parties are now at the primary stage of the negotiation process.
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