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Major French bank set to sell business in Russia

Major French bank set to sell business in Russia Illustrative photo (Photo: Getty Images)
Author: Daria Shekina

One of France's largest banks, Societe Generale, will soon sell its business in Russia and exit the market of the aggressor country, reports Bloomberg.

It is noted that Societe Generale may finalize its exit from Russia by selling stakes in some of the country's largest companies worth around $75 million to its former local unit, PJSC Rosbank.

Russian dictator Vladimir Putin on Sunday approved a decree allowing Rosbank to buy Russian shares from the French bank.

The portfolio includes small stakes in the country's largest companies such as PJSC Gazprom, refined nickel producer PJSC GMK Norilsk Nickel, oil companies PJSC Lukoil and PJSC Rosneft, and 20 other holdings.

Russian oligarch Vladimir Potanin previously bought a stake in Societe Generale in Rosbank. Later, the billionaire fell under sanctions from the US and the UK.

Societe Generale
The French financial conglomerate, along with BNP Paribas, Credit Agricole, and Groupe BPCE, forms the big four in the country's banking market.

As of 2017, Société Générale was the third-largest bank in France and ranked 20th globally in terms of assets. Since 2011, it has been listed among globally systemically important banks.

International businesses leaving the Russian market
Following the imposition of sanctions against Russia by Western countries, several foreign brands have decided to sell their businesses in Russia.

Recently, the Japanese tire manufacturer Bridgestone sold its plant in Ulyanovsk and completely exited the Russian market.

The United States also allowed the largest bank in Britain, HSBC, to sell its business in Russia."