IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 27 Nov 2014 | Removal date: open ended
Still in force

Bailout (capital injection or equity participation)

With Decree 1245 of November 27, 2014 was approved a state intervention with the purpose to "enhance the stability of the banking system and the preservation of the volume of lending to the domestic economy.' Here the recipient of state support is"Gazprombank" (Open Joint Stock Company) -- one of the largest universal financial institutions in the Russian Federation. Among the clients of "Gazprombank" are 4 million individuals and about 45 thousand of legal entities. The Bank currently owns seven subsidiaries and affiliated banks in Russia, Belarus, Armenia, Switzerland and Luxembourg, with offices in Astana (Kazakhstan), Beijing (China), Ulan Bator (Mongolia) and New Delhi (India). 
 
The details of this financial scheme are:

  • "Gazprombank" has received a subordinated credit by the state-owned Vnesheconombank, granted in accordance with the Federal Law "On Additional Measures to Support the Financial System of the Russian Federation" (Federal Law Nr. 173-FZ of 13 October 2008).
  • With Decree Nr. 1245, the Russian Government has taken the decision to acquire preference shares of "Gazprombank" in the total amount of RUB 39.95 billion with financial resources from the National Welfare Fund.

The Deputy Chairman of the Management Board of "Gazprombank", Mr. Alexander Sobol, has commented the likely effects of the state intervention as follows:'We welcome the Government's decision to convert the deposit from Vnesheconombank into preference shares. Otherwise, the subordinated debt would be gradually amortised from the regulatory capital starting from 2016. The conversion will enhance the capital structure of the Bank and will facilitate its business growth amidst the limited access to the international capital markets'.

The GTA includes state guarantees and other financial incentives thatare likely to affect the restructuring and performance of firms facinginternational competition, whether from imports, in export markets, andfrom foreign subsidiaries. 

AFFECTED COUNTRIES

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