The Russian Government has acquired preference shares of Gazprombank in the total amount of RUB 39.95bn as part of its measures to support the banking system. The shares were acquired using the proceeds of a repayment by Gazprombank of a subordinated deposit in the same amount.
The conversion allows the Bank to strengthen its capital structure and provides sufficient scope for it to expand its operations. Preference shares are non-voting and therefore do not affect the governance of the Bank and allocation of the voting rights of the current shareholders.