EBRD to invest in Promsvyazbank

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24 November 2009

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

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,...

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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.

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%