Russia’s Promsvyazbank is in talks to buy fellow sanctioned lender SMP Bank and has already carried out due diligence work, the Kommersant daily reported on Thursday, citing sources.
Promsvyazbank, one of Russia’s 13 “systemically important credit institutions”, offers a wide range of services but has focused on state employees and the defence sector since it was bailed out by the central bank in 2017.
Promsvyazbank was targeted with U.S. sanctions in February.
Kommersant said the companies began discussing the possible acquisition in December. SMP Bank, which was placed under U.S. sanctions in 2014, is majority-owned by the Rotenberg family. Washington says Arkady and Boris Rotenberg have close ties to President Vladimir Putin.
Promsvyazbank and SMP Bank did not immediately respond to requests to comment.
Source: Reuters.com