French Bank Société Générale Loses Billions in Russian Pull-out

Société Générale, a French banking group, has stated that it is ceasing operations in Russia and selling its majority ownership in the Russian bank Rosbank. Following Moscow's invasion of Ukraine, French companies have been pushed to leave the country.

Since the invasion began on February 24, hundreds of foreign companies have left Russia, ranging from banking firms to merchants and fast-food restaurants.

The biggest foreign employers in Russia, French companies, have been among the slowest to leave, prompting Ukrainian President Volodymyr Zelensky to urge them to leave during his speech to the French parliament on March 23.

In a statement, Société Générale claimed its exit from Russia will cost them 3.1 billion euros.

In a statement, Société Générale stated, "Société Générale terminates its banking and insurance activities in Russia."

Interros Capital, an investment business created by one of Russia's wealthiest oligarchs, Kremlin loyalist Vladimir Potanin, also announced "the signing of a sale and purchase agreement to sell its whole ownership in Rosbank and the Group's Russian insurance companies."

"With this arrangement, the group will exit Russia in an effective and orderly manner, ensuring continuity for its staff and clients," Société Générale stated.

The Bank stated that the transaction would be finalised in the coming weeks and that it was subject to regulatory approval.

Following the revelation, Société Générale's stock dropped over 6% in value.

Renault has halted production at its Moscow plant and warned that it may sell its majority ownership in AvtoVAZ, Russia's largest automaker. Decathlon, a French sports retailer, has ceased sales in Russia.

Auchan, a big French grocery giant singled out by Zelensky, has decided to stay, citing the "human" cost of leaving.

Following the invasion and Western sanctions against Russia, including the freeze of 300 billion euros in foreign currency reserves, the Western flight began.