Investments in Russian banks

• Foreign direct investment in Russia
• Stock market of Russia
• Investment in foreign shares in Russia
• Banks in Russia

2023: Foreign equity participation in Russian banks falls to 8.97%

The amount of foreign capital participation in the total authorized capital of credit institutions licensed to carry out banking operations, as of January 1, 2023, amounted to 8.97% against 10.73% a year earlier. The Central Bank of the Russian Federation cited such data in mid-February 2023.

According to the regulator's estimates, the share of foreign capital in Russian banks for the year decreased from 10.01% to 9.58%. The Central Bank also reports that foreign investments, the indicator of which is used to determine the amount of participation in the total authorized capital of credit institutions, amounted to 273.15 billion rubles, their total authorized capital - 3.05 trillion rubles.

The Bank of Russia calculated the participation of foreign capital in Russian

Foreign investments calculated to determine the amount of participation in the total authorized capital of insurance organizations amounted to 21.796 billion rubles, their total authorized capital - 227.435 billion rubles. In 2021, foreign investments in credit organizations amounted to 309.622 billion rubles, and in insurance organizations - 23.533 billion rubles.

According to the Bank of Russia, as of March 2022, 52 banks with foreign capital operated in the Russian Federation. After the start of Russia's military operation in Ukraine, many credit organizations with foreign capital left the Russian market. In October 2022, Vladimir Putin approved a list of 45 credit institutions for which a ban was established on transactions with shares, shares and deposits in authorized capital, unless special permission was received. Among them are the largest foreign players, including Raiffeisen Bank, Unicredit Bank and Citibank.^[1]

2020: Investments of non-residents in Russian banks increased by 3.47 billion rubles

Non-residents' investments in the total authorized capital of Russian banks by the end of 2020 increased by 3.47 billion rubles compared to a year ago and reached 404.42 billion rubles. This is stated in the report of the Central Bank of the Russian Federation.

According to the regulator's experts, the increase in non-resident investments for 2020 by 0.86% was due to several factors, namely:

Investments of non-residents in the total authorized capital of Russian banks by the end of 2020 increased by 3.47 billion rubles compared to the indicator of one year ago and reached 404.42 billion rubles

• increase in deposits of non-residents in the authorized capital of 9 banks;
• acquisition of 14 credit institutions by non-residents in the secondary market;
• alienation of shares by non-resident shareholders to residents of the Russian Federation or withdrawal of non-residents from the shareholders (participants) of 13 credit institutions;
• decrease in the amount of participation of a non-resident (sole shareholder) of one bank.

According to the Russian Central Bank, as of January 1, 2021, 124 credit organizations with the participation of non-residents are registered and have a license for banking operations in Russia.

In nine credit institutions, non-resident participants, whose total share in authorized capital is more than 50%, by the end of 2020 were under the control of residents of the Russian Federation. The number of such organizations in 2020 decreased by two due to the withdrawal from this category of three credit institutions (Neklis-Bank, RESO Credit and NPO Krasnoyarsk Regional Settlement Center) and the acquisition by a non-resident of 100% of the shares of NPO Network Settlement Chamber. The participation of non-residents in the authorized capital of this category of credit institutions during 2020 increased by 1.2 billion to 32.24 billion rubles.

Investments of non-residents in the total authorized capital of existing credit institutions, excluding the participation of non-residents under the control of residents of the Russian Federation, increased by 2.27 billion, to 372.19 billion rubles.

Information on existing credit institutions with the participation of non-residents as of January 1, 2021

Notes