The first major bank withdrew assets frozen due to sanctions from the balance sheet

Russian sanctioned banks began to get rid of blocked assets: there is the first case when a credit institution with the help of a new reorganization scheme took them off the balance sheet,reported to the Central Bank

One of the systemically important banks went through the reorganization procedure and removed assets and liabilities blocked due to sanctions from the balance sheet, Olga Polyakova, deputy chairman of the Central Bank, said at the congress of the Association of Banks of RUSSIA (ADB).

“As for the allocation of blocked assets into a separate legal entity, there is a law , and there are already decisions. One of the systemically important banks has already gone through this procedure: just recently they made such a decision - they allocated assets, allocated liabilities into a separate legal entity. it works,” she said.

Last summer, the authorities developed a new scheme for clearing the balance sheets of banks affected by sanctions: credit institutions can carry out a non-standard reorganization - form a new legal entity, transfer to it assets frozen due to restrictions, and at the same time liabilities in the form of obligations to foreign creditors. According to this scheme, all settlements on debts to non-resident clients will be performed only at the expense of the assets of the new company, that is, frozen ones. The law came into force in July last year. Banks can carry out such reorganization until July 1, 2023.

VTB Deputy Chairman Dmitry Pyanov, speaking at the ADB congress, noted that the reorganization procedure is complicated, and the law needs to be finalized. Previously, he estimated that the VTB Group could, through reorganization, remove blocked liabilities for 180 billion rubles from the balance sheet. and assets for the  same amount.

“If the bank is PJSC (public joint stock company. -), then problems arise there in connection with the requirements of the law“ On Joint Stock Companies. I know that the property committee is preparing amendments on this matter,” commented Deputy Finance Minister Alexei Moiseev.

Among the systemically important banks that fell under the blocking sanctions of the United States , the European Union or Great Britain , in addition to VTB, Sberbank, Promsvyazbank, Otkritie, Sovcombank, Rosbank, Moscow Credit Bank have the status of PJSC. The joint stock companies are Alfa-Bank and Tinkoff Bank. The latter keeps blocked assets worth 5.2 billion rubles on its balance sheet, its parent structure TCS Group disclosed in its IFRS statements for the first quarter. Alfa-Bank did not publish data on blocked assets, as well as reporting under IFRS.

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