Under the terms of the deal, BNP will transform its consumer-credit unit into a joint venture with Sberbank, which will now own 70 percent of the business. The remaining 30 percent will be owned by the French bank, which will operate under its Cetelem brand.
BNPs current Russian consumer loan portfolio of USD 1.05 billion will not be part of the joint venture, but future lending will be done under Cetelem.
Via this strategic alliance, BNP will be able to avoid a massive withdrawal from the Russian retail market, which is dominated by banks such as Sberbank and VTB.
The transaction between BNP and Sberbank is expected to end in mid-2012.
In recent news, BNP Paribas has decided to continue handling retail banking operations across Ukraine via its Akib UkrSibbank unit.
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