Russia introduces emergency administration in the largest Crimean bank due to insolvency
The Central Bank of Russia introduced a temporary administration in Genbank, one of the largest banks in the Crimea, as reported on the bank’s website.
The bank, which was found to have a shortage of funds, will be salvaged by becoming a part of Sobinbank, which is part of the Bank Rossiya Group. The US Department of the Treasury believes that Rossiya is the personal bank of the top leadership of the Russian Federation. The shareholders of the institution are members of President Putin’s inner circle and are associated with the Ozero Dacha housing cooperative.
Genbank is one of two main banks in the Crimea. A small Moscow bank came to the peninsula immediately after the annexation by Russia and the pro-Russian authorities of the Crimea and Sevastopol received 25% in its authorized capital. Now the bank has about 100 branches on the peninsula.
In addition to Genbank, RNKB, and ChBRR banks are also operating in the Crimea. On the peninsula there are branches belonging to six banks: Krayinvestbank, Tempbank, IS Bank, North Credit Bank, Rossiya, and VVB. Other banks are wary of working on the peninsula because of the possibility of falling under Western sanctions.
Genbank was entered into the SDN, the list of the companies whose assets are subject to freezing in the US, in December 2015.