Russia's Promsvyazbank ponders acquisition of SMP Bank – Kommersant

Russian state-controlled PJSC Promsvyazbank could acquire JSC Bank Severny Morskoy Put, or SMP Bank, with due diligence of the latter completed earlier in 2022, Kommersant reported June 23, citing market sources.

Discussions have been ongoing since December 2021. Neither bank responded to requests for comments, the newspaper said.

Promsvyazbank, which specializes in servicing Russia's defense sector, was hit by Western sanctions earlier in 2022 ahead of Russia's invasion of Ukraine. Further international measures were implemented against the bank after the launch of the invasion.

SMP Bank has been operating under sanctions since 2014, after the annexation of Crimea by Moscow. The lender is controlled by Russian investors Arkady and Boris Rotenberg who, according to Western authorities, have close links to Russian President Vladimir Putin.