French bank Societe Generale exits Russia

French banking group Societe Generale said yesterday it was ceasing activities in Russia and selling its majority stake in Rosbank, weeks after Ukraine's leader urged French firms to leave over Moscow's invasion of his country.

Societe Generale said in a statement that its withdrawal from Russia would cost it 3.1 billion euros ($3.4 billion). "Societe Generale ceases its banking and insurance activities in Russia," the firm said.

It also announced "the signing of a sale and purchase agreement to sell its entire stake in Rosbank and the Group's Russian insurance subsidiaries" to Interros Capital, an investment firm founded by one of Russia's richest oligarchs, Kremlin confidant Vladimir Potanin.

"With this agreement, concluded after several weeks of intensive work, the group would exit in an effective and orderly manner from Russia, ensuring continuity for its employees and clients," Societe Generale said.

The bank said it expects the deal to be completed in the coming weeks and that it was subject to approval from regulators.

Societe Generale shares sank by more than 5 percent following its announcement.

In a separate statement, Interros said that "the conditions for the deal have been approved by the government commission on control over foreign investment in the Russia Federation."

"Interros intends to do the maximum efforts to develop Rosbank," Potanin said in his company's statement. "The main objective is to maintain the stability of Rosbank, as well as create new opportunities for its clients and partners," he said.

In a statement, Rosbank said it was "certain" that the firm would maintain its stability thanks to its "expertise" and reliance on "international expertise."

The Russian bank said it...