Yuri Kovalchuk, owner of 30.4 percent in Rossia Bank
Photo: Sergey Semyenov
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Banks Downgraded in Name
Russia’s lawmakers endeavor to keep the word “Russia” as well as its derivatives in the names of state banks bypassing new regulations of the Civil Code. Under the bill submitted to the State Duma, the ban won’t extend to Sberbank of Russia, Rosselkhozbank and Roseximbank. All other banks with names of prohibited connotation will have to go through renaming and Rossia Bank of Yuri Kovalchuk is no exception.
The bill liberalizing procedures of using words “Russia,” “the Russian Federation” and their derivatives in the names of companies has been initiated by State Duma members Vladislav Reznik and Liana Pepelyaeva. Their proposal is that the prohibition won’t extend to the banks with government’s interest of above 50 percent.
Section 4 of the Civil Code that took effect January 1, 2008 commits all companies to cross out the word “Russia” (Rossia) from their names. “During half-year existence of this rule of the RF Civil Code, various companies have applied to the State Duma for its repealing,” Reznik said. “We submitted this amendment to avoid claims of regulators to the banks.”
The official web of Central Bank of Russia (CBR) provides a list of over 15 banks with names consisting of Rossia or a portion of this word. Amid them are Agros, All-Russian Bank for Regions Development, Rosavtobank, Rosbusinessbank, Rosselkhozbank, Sberbank of Russia, Roseximbank, Rossia Bank and others.
But only Sberbank, Rosselkhozbank and Roseximbank will benefit from the new law. The remaining banks, and Rossia Bank of Yuri Kovalchuk (30.4 percent of common stocks) is no exception, will have to change names when they decide to amend constituent documents, said Mikhail Sukhov, head of credit institutions’ license and financial recovery department at the CBR. “First of all, the banks increasing the capital will change names, as it requires introducing amendments to constituent documents,” the official explained.
www.kommersant.com
All the Article in Russian as of July 15, 2008
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