MOSCOW May 21 Russia's central bank threw
sanctions-hit bank SMP a lifeline on Wednesday, saying it would
receive loans to help save three smaller banks from bankruptcy,
a move analysts said may also boost SMP's number of branches.
SMP is co-owned by Arkady Rotenberg, a former judo sparring
partner of Russian President Vladimir Putin, and his brother
Boris, and was put under sanctions in April by the United States
to punish Russia for annexing Ukraine's Crimea region.
The brothers were put under sanctions in an earlier wave,
which Washington said targeted Putin's "cronies".
SMP says the sanctions have hurt the bank's operations, but
were not causing direct losses. But the measures may have
persuaded some clients to leave, analysts said.
The central bank said in a statement it had decided to bail
out retail bank Mosoblbank, the country's 83rd largest bank by
assets, and two affiliated lenders, handing their rehabilitation
to SMP to protect the rising number of obligations to clients.
The Deposit Insurance Agency would give the bigger lender a
loan worth 96.8 billion roubles ($2.8 billion) over 10 years to
help the banks' recovery, it added.
Mosoblbank had been operating under central bank
restrictions since May 2011.
It is the second-largest bailout since the 2011 rescue of
Bank of Moscow, local media said, when VTB took over the bank
only to find that almost half of its loan book was doubtful,
forcing a record $14 billion state bailout.
Kommersant newspaper reported earlier that, by putting SMP
in charge of the three banks, the sanctions-hit lender would
gain control over a large number of branches, which could help
boost its funds.
With about 100 branches and assets of 208 billion roubles
($5.8 billion), SMP stands 35th among Russian banks by assets on
a ranking by Interfax. But with assets growing 52 percent from a
year earlier, it is one of the fastest-growing.
($1 = 34.7482 Russian roubles)
(Reporting by Elizabeth Piper and Megan Davies; editing by
Jason Bush and Tom Pfeiffer)