The parent company of the Russian Rosbank, the French Société Générale, has come under massive pressure as a result of the Ukraine crisis.
(Photo: Bloomberg)
Frankfurt One of the largest Russian banks is actually French. In terms of total assets, Rosbank ranks ninth among the most important financial institutions in Russia, and Société Générale has held a majority stake in the institute since 2008. Now CEO Frédéric Oudéa is apparently preparing for a possible total loss. The bank has “more than enough buffers to cushion the consequences of a possible extreme scenario in which the group loses its shares in Russia entirely,” the bank said at the end of last week.
The justification given by Société Générale for its fears caused a stir in the industry. The statement mentions the risk that the bank will be deprived of ownership of its Russian subsidiaries. The comments suggest that Western banks fear economic retaliation from Russia.
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