VILNIUS - The Bank of Lithuania has given permission to Russia's Konversbank to take operational control over Bankas Snoras six month after the two banks agreed on a deal. The permission will take effect once Konversbank gets the green light from the Central Bank of Russia to invest in Snoras' share capital.
At present, the Luxembourg-registered Incorion Investment Holding, which is owned by Konversbank, control a 49.9 percent stake in Snoras. Banking regulations in Russia prevent financial institutions there from owning direct stakes in foreign banks, which Konversbank circumvented by going offshore.
After buying a new 25 million litas (7.2 million euro) equity issue by Snoras, Konversbank will control a 57.6-percent interest in the bank, Lithuania's fourth largest by assets.
Earlier Konversbank President Vladimir Antonov promised to invest $50 million in Snoras, which by assets is far larger than its Russian counterpart, which in the past has credited many civilian nuclear projects on behalf of Russia's Nuclear Energy Ministry.