Russia will pursue Sberbank sale in modified form

Subject

Sberbank transfer.

Significance

The Central Bank of Russia (CBR) wants to postpone the transfer date for the money it receives from selling giant lender Sberbank from June to December. The finance ministry's purchase of a majority stake in Sberbank from the CBR amounts to a transfer from one state entity to another.

Impacts

• The sale extricates the CBR from being both regulator and owner of Russia's largest lender.
• The Sberbank case illustrates the early disruptions that COVID-19 may cause, although Russia has few reported cases.
• Sberbank’s corporate strategy is likely to run its course unaltered through 2020.