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EBRD to invest in Promsvyazbank

24 November 2009

The EBRD looks set to make its largest investment to date in the Russian banking sector.

Read more: [EBRD invests in Russian banking sector] [ Promsvyazbank EBRD equity stake]

The European Bank for Reconstruction and Development (EBRD) has announced its intention to acquire a minority equity stake of 11.75% in Promsvyazbank (PSB), Russia’s third largest locally-owned private bank, and plans to pay RUB4.6 billion ($159 million) to subscribe to a recent issue of ordinary voting shares.

According to Nick Tesseyman,...


Poll

Will Russia’s recent ban on grain exports result in a significant rise in private risk insurance claims from grain traders unable to fulfil their contracts?

Yes – there will be more claims. The government’s actions allow traders, with PRI cover, to make claims through contract frustration.
8%
No - the majority of Russia’s wheat production, some 70%-80%, is used for domestic consumption so the contracts represent only a small portion of the total wheat market, limiting the amount of potential claims.
23%
No - traders had a week’s notice before the ban allowing them to secure alternative supplies to fulfil contracts stated as optional origin.
23%
Maybe - but claims are likely to be limited to traders dealing in soft wheat whose contracts demand they source wheat only from Russia.
46%