Page 98 - RusRPTFeb23

HSBC, which rushed to close the sale of its Russian subsidiary to Igor Kim's Expobank just before Putin’s decree was signed, delegated the negotiations with the authorities to the buyer, according to FT.
Citi is winding down the business of its UniCredit Bank and reportedly is exploring options but does not want to “simply give the asset away”. The bank so far managed to offload its loan book to local UralSib bank. Raiffeisen's real plans are still unknown.
The Czech Financial Analytical Office (FAO) froze about CZK175mn (€7.3mn) of the EU-sanctioned Vneshekonmbank (VEB) controlled by the Russian state. The frozen amount was in the bank accounts of Pilsen Steel, which has been in insolvency since 2019. FAO froze the assets after VEB.RF claimed the money, which it provided to Pilsen Steel as a loan, as part of the insolvency proceedings, Czech Television reported. VEB controlled Pilsen Steel through VEB Kapital after Appian Group sold parts of its Skoda Holding portfolio to the Russian machinery holding OMZ in 2004.
Russia’s Central Bank has made a decision on state registration of the first new bank in four years, Tochka Bank LLC, which will focus on rendering services to small and mid-sized businesses, the regulator said in a statement on January 11. "The Bank of Russia decided to officially register the Moscow-based Tochka Bank LLC and to issue a universal license authorizing it to carry out bank transactions in rubles and foreign currencies (with the right to raise deposits from households) and those in precious metals. The Bank of Russia will issue the banking license after the authorized capital of Tochka Bank LLC is paid," the statement reads. The bank will focus on rendering remote banking services to small and medium-sized enterprises, the Bank of Russia noted. A new bank has been registered by the Central Bank for the first time since March 2019. Currently, there are 326 banks licensed by the Bank of Russia, including 225 banks with a universal license.
Russian financial institutions will no longer be obliged to comply with IFRS reporting standards, in what could dent the revenues of the auditing firms, Kommersant daily reported. Market participants surveyed by Kommersant believe that the recent passing of the bill lifting IFRS reporting requirements for banks and financial institutions could spell a RUB0.7bn-RUB1.2bn annual loss for auditors. In addition, auditors may lose about 15% of revenue from IFRS consulting services. According to RAEX Analytics, the aggregate revenue of major auditing companies and groups from core services in 2021 amounted to RUB83.9bn. Last week, the State Duma Committee on Financial Markets recommended passing in the first reading the bill to exempt non-credit financial institutions (NFOs) and banks from individual IFRS reporting.
The NBU has called on international banks to withdraw from the Russian
98 RUSSIA Country Report February 2023 www.intellinews.com