Go Back

Bank of Moscow investments in non-core assets

Recently, there have been discussions in the media about Bank of Moscow investments in non-core assets under the former management. Indeed, Bank of Moscow has invested in and provided loans for a number of companies working in such industries as forestry, construction and agriculture. The Bank has always been open and transparent about these investments and the financing of various projects. The Bank always followed all the necessary procedures when approving loans to these companies. Financing by Bank of Moscow has helped a number of companies to grow and has created thousands of new workplaces in several regions of Russia. One such example is a company called Investlesprom, in which Bank of Moscow owns 20% of its shares. Investlesprom provides workplaces for almost the entire population of two Russian cities – Segezha in Karelia and Sokol in Vologod region. Under Andrey Borodin’s leadership, Bank of Moscow was preparing to invest in projects that would create some of the most modern production facilities in Russia. These projects supported the Russian Government’s strategic objective of modernising the country. Apparently, the new management of the Bank has frozen these projects. The reasons for this remain unclear.