Société Générale finalizes the sale of its Russian subsidiary

Société Générale announced on Wednesday May 18 that it had finalized the sale of Rosbank, its Russian banking subsidiary, as well as its insurance subsidiaries in Russia, where it had been present since 2006. Rosbank was acquired by Interros Capital, its previous shareholder.

A transaction that does not weaken Societe Generale

Societe Generale has finalized the sale of its Russian banking subsidiary Rosbank. The Group has also sold its insurance subsidiaries in the country to the Russian investment fund Interros Capital, founded and managed by Vladimir Potanin. This fund was Rosbank's previous shareholder.

This transaction, announced on April 11, will result in a net loss on the income statement of around 3.2 billion euros in Q2 2022. It will also reduce the capital ratio by 7 basis points.

However, Societe Generale's Tier 1 ratio is far from threatened. It stood at 12.9% at March 31, 2022, or " 370 basis points above the regulatory requirement ", the group details in a press release.

 

Interros Capital multiplies successful transactions

Vladimir Potanin, the oligarch at the head of Interros Capital, has been multiplying operations of this type since the start of the war in Ukraine. In just a few weeks, he has carved out a significant place for himself on the Russian banking market.

While he is subject to Canadian and Australian sanctions, he is not targeted by the United States, the European Union or the United Kingdom. As a result, he can multiply his transactions without being worried.

With a fortune in excess of $17 billion, he was able to secure a very attractive price for Oleg Tinkov's shares in Russian fintech Tinkoff Bank.

Vladimir Potanin, who is said to be close to Putin, has also bought a stake in JP Morgan's Russian subsidiary, TCS Group, and acquired the Russian branch of Global Payments, United Card Services.