Putin clears Rosbank's acquisition of Societe Generale's Russian holdings
A view shows a board advertising Rosbank on the roof in a building in Moscow, Russia
Russian President Vladimir Putin has given the green light for Rosbank to acquire stakes in key Russian companies previously owned by Societe Generale, according to a decree signed on Sunday.
The decree specifically enables Rosbank, a part of the Societe Generale group, to purchase SocGen's interests in major Russian firms, including energy giants like Rosneft and Gazprom, as well as leading metal companies like Norilsk Nickel and Severstal. While Societe Generale chose not to comment, it was revealed that the bank had a significant exposure of 22.4 billion euros to Russia as of June 2021, as reported by the European Banking Authority (EBA).
Societe Generale's decision to offload its separate stakes in various Russian companies was confirmed in May 2022 when it exited Russia and finalised the sale of its local unit, Rosbank, to the Interros group, linked to Russian oligarch Vladimir Potanin.
Putin's decree is particularly noteworthy as transactions involving Russian assets by companies from nations deemed "unfriendly" due to sanctions against Russia require special approval from Moscow.
While Societe Generale's individual holdings in Russian companies were relatively small, the combined value of the assets under consideration is said to be in the "billions of roubles."
Although specific details of the transaction remain undisclosed, the move aligns with Russia's broader geopolitical landscape. Putin has previously characterised Western sanctions as an "economic war" against Russia, leading to frozen assets worth hundreds of billions of dollars in the West, including state assets and those of Russian businessmen.
Societe Generale's decision to divest its Russian assets is part of a broader trend, where Western companies are adjusting their positions in Russia amid geopolitical tensions.
It's worth noting that the acquisition comes at a time when Russian entrepreneurs are strategically gaining control of major Western assets in Russia. Examples include Russian control over Carlsberg's eight breweries and Danone's enterprises.
(With inputs from Reuters)
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