Société Générale Sells Russian Bank Rosbank: Banking Sanctions Update for April 11-17, 2022
4/11/2022
The Wall Street Journal reported Monday that Société Générale is selling its stake in Russian Bank Rosbank to Interros, an investment run by metals billionaire Vladimir Potanin.
According to the Wall Street Journal, "Société Générale said the exit would result in hits to its capital and income, including an estimated $3.4 billion it said would be accounted for in its income statement. The Russian business accounted for less than 3% of Société Générale’s 2021 earnings, and the bank said it remains committed to paying dividends and buying back shares."
French companies are the largest foreign employers in Russia, and have been the slowest to exit the country after Russia invaded Ukraine in February. Ukrainian President Volodymyr Zelensky addressed the French parliament in March and urged French business leaders to leave Russia.
According to the International Business Times, “Since Zelensky's speech to the French parliament, auto giant Renault suspended operations at its Moscow factory and hinted that it might divest its majority stake in domestic car giant AvtoVAZ, while French sports retailer Decathlon halted sales at its stores in Russia. Another major French company singled out by Zelensky, supermarket chain Auchan, has decided to stay, citing the "human" cost of leaving.”
Related sanctions news for Monday, April 11:
- Ukraine Crisis is not Propelling Crypto Market Activity, Blockchain Data Shows (Coindesk)
- S. Banks Face Slowdown in Revenue After Deal Run Fades (Financial Times)
- Ukraine Economy to Fall 45% in 2022, Russia 11%, World Bank Says (Bloomberg)
- Russian Bank VTB no Longer has Control of European Subsidiary -German Regulator (Reuters)
- S&P Downgrade Indicates Russia Headed for Historic Default (AP)