MOSCOW, November 19 (RIA Novosti) – Shares in Russia’s largest lender Sberbank led advancers in afternoon trade on Monday following the government’s privatization statement, Moscow Exchange data showed.
As of 4:51 p.m. Moscow time, ordinary shares in the state-controlled bank had gained 1.6 percent and its preferred stock rose by 2 percent compared with overall growth of 1.1 percent in the MICEX stock index.
Russian First Deputy Prime Minister Igor Shuvalov announced on Monday the government intended to withdraw from the capital of Sberbank and Russia’s second largest lender VTB within 5-10 years.
In September, the Russian government sold a 7.6 percent stake in Sberbank. It had not announced specific plans for the bank’s further privatization.
The government’s privatization plan for VTB approved in June 2012 envisages the sale of a 25 percent minus one share in the lender by late 2013 and complete withdrawal from the bank’s capital by 2016. This plan previously announced by the government made investors’ reaction to the VTB stock more restrained as VTB shares grew only by 0.9 percent.