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Otkritie Bank’s woes to have no effect on cooperation with FC Spartak — club owner

August 29, 2017, 20:05 UTC+3

Russia’s regulator made a decision earlier on Tuesday to act as Otkritie’s main investor and place the lender under temporary administration

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Leonid Fedun

Leonid Fedun

© Alexey Filippov/TASS

MOSCOW, August 29. /TASS/. The situation around major Russian privately-held lender Otkritie Bank beset by financial problems won’t affect its cooperation with FC Spartak, football club owner Leonid Fedun told TASS on Tuesday.

 Russia’s Central Bank made a decision earlier on Tuesday to act as Otkritie’s main investor and place the lender under temporary administration.

“The Central Bank’s statement suggests that Otkritie Bank will function in its previous regime. The bank’s owners will continue to participate in its management. This fact won’t have any effect on cooperation between the bank and FC Spartak,” Fedun said.

 In February 2013, Spartak and Otkritie signed a six-year deal, under which the football club’s home arena in Tushino in northwest Moscow was named Otkritie-Arena. The deal was worth 1.2 billion rubles ($20 million at the current exchange rate).

In June this year, Otkritie started to experience a liquidity shortage, beset by a run on its deposits. The bank’s corporate clients withdrew about 100 billion rubles ($1.7 billion) in the first month of summer while the cash outflow in July hit over 600 billion rubles ($10 billion). Moreover, both companies and private individuals and other banks were withdrawing their funds from Otkritie.

Simultaneously, a financial analyst at Alfa Capital management company sent out a letter to the company’s clients warning about risks confronted by major private banks, including Otkritie. The letter said that the bank’s fate might be decided already this autumn rather than after the presidential elections in Russia in March 2018. Russia’s anti-trust watchdog issued a warning for Alfa-Capital in the wake of this letter, after which it was recalled. 

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