Promsvyazbank

Promsvyazbank's problems began in 2017. The trigger was a letter to clients from the analyst of Alfa-Capital Sergei Gavrilov, in which he named Promsvyazbank among the four problem banks threatened by restructuring.[6] In autumn, the presence of problems was confirmed by Moody`s.[7]

In December 2017, the Central Bank of Russia introduced a temporary administration at Promsvyazbank, and then announced that it had found signs of illegal transactions. Including the disappearance of credit folders worth more than 100 billion was announced.[8] Soon bank co-founders Ananyev brothers left Russia. New administration has been claiming a compensation from ex-owners for the damage it suffered because of their mismanagement. In 2019 their property (planes, cars, paintings, etc.) was sized by court order. Later Ananyevs were charged with multi-million-dollar embezzlement, arrested in absentia and added to Interpol’s wanted list.[9] In December 2020 Interpol removed brothers from list, finding the prosecution as politically motivated.[10] Three years later, Dmitry Ananyev, one of the co-founders of PSB, said that the plan to nationalize the bank and use it for the needs of the defense industry originated from CBR back in 2015. According to the banker, pressure was put on him, including threats to open a criminal case or even kill him.[11]

In January 2018, Central Bank recognized the capital base of PSB as negative and reduced its authorized capital to 1 ruble. PSB was delisted from the Moscow Stock Exchange. In March, the State Duma adopted a law according to which the PSB becomes the property of the state.[12] According to the decision of the Russian government, PSB has become a captive bank for defense sector. Petr (Pyotr) Fradkov, the eldest son of the former prime minister (2004-2007) and former foreign intelligence chief (2007-2016) Mikhail Fradkov, was appointed head of the bank (in the position of chairman of the interim administration).[13]

Due to the transformation of Promsvyazbank into a "defense" bank, the Russian authorities had concerns about US sanctions. A number of steps have been taken to protect customers and the bank's management. Customers were asked to sell or withdraw foreign securities and convert or withdraw dollar deposits. The composition of the bank's board was classified, Petrf Fradkov is the "sole executive body". (He said that he was not afraid of personal sanctions).[14]

• Official website