The French bank has announced to “cease its activities” in Russia and sell its stakes in the Russian banking sector, at a cost of 3.1 billion euros.
The French bank Société Générale, which has continued its activities in Russia since the start of the invasion of Ukraine on February 24, announced on Monday that it would end it 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 action of the French bank Societe Generale jumped nearly 5% Monday morning.
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In a press release, the group indicates that it has signedan agreement to sell its entire stakein Rosbank, a heavyweight in the Russian banking sector in which he was the 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, ensuring continuity for its employees and customers.“, highlights the bank. In the first exchanges on the Paris Stock Exchange, the Societe Generale title rose by more than 7%, before reducing its gains. Around 9:15 a.m., it climbed 4.37% to 22.81 euros, at the top of the CAC 40 index and led other banks on the rise such as BNP Paribas (+0.99% to 48.29 euros).
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Societe Generale points out that the transactionconsidered“remains subject to the approval of the competent regulatory and competition law authorities, and that its finalization”should take place in the next few weeks“. In its accounts, this assignment “should lead to a negative impact of 3.1 billion euros, i.e. 2 billion in impairment and 1.1 billion in exceptional items“.
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