OREANDA-NEWS. The Russian Government decided to acquire preference shares of Gazprombank in the total amount of RUB 39.95bn from National Welfare Fund as part of its measures to support the banking system. The acquisition of shares will be made using proceeds of repayment by Gazprombank of subordinated debt provided earlier by the National Welfare Fund in the same amount.

"We welcome the Government's decision to convert the deposit from Vnesheconombank into preference shares. Otherwise, the subordinated debt would be gradually amortised from regulatory capital starting from 2016. The conversion will enhance capital structure of the Bank and facilitate business growth amidst limited access to international capital markets", Deputy Chairman of the Management Board Mr. Alexander Sobol said.