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Regions / Emerging Markets

Russian state-owned banks face Ukraine risks

Staff | March 12, 2014

LONDON – Ratings agency Fitch warned that Russian state-owned banks have significant exposure to Ukraine, as tension between the two countries deepens over the future of Crimea. Fitch senior director Alexander Danilov believes that about half the exposure is in the form of local lending by Ukrainian subsidiaries, which are mostly parent-funded. A further 25% comes from acquisition finance for Ukrainian and Russian businessmen to buy assets in Ukraine.

 

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