Sovcombank canceling a deal to buy Uzagroexportbank due to sanctions

This was stated by the first deputy chairman of the board of Sovcombank Sergey Khotimsky, Interfax reports.

“Unfortunately, due to the fact that sanctions were imposed on us, as well as on almost all systemically important Russian banks, the implementation of the project in the current conditions has become impossible. Now, by mutual decision of the parties, the transaction is in the process of cancellation. We can say that it has almost been canceled,” he said.

The United States imposed blocking sanctions on Sovcombank at the end of February 2022. Later, similar decisions were made by a number of other countries.

Earlier it was reported that Sovcombank was buying Uzagroexportbank from Uzbekistan for $4 million. Sovcombank won a public tender for the privatization of this bank, signed an agreement with the State Assets Management Agency of Uzbekistan.

The plans of Sovcombank to buy 100% of Uzagroexportbank became known in November 2021. After the acquisition of Uzagroexportbank, Sovcombank planned to capitalize it up to a minimum of $10 million.

Uzagroexportbank was established in the summer of 2017. Its main activity is to support producers and exporters of the agro-industrial sector.