North-West 1 Allicance Bank had a branch office in Murmansk, Russia's largest city above the Arctic Circle. Photo: Thomas Nilsen

Norwegian bank leaves Russia after multi-million loss

Sparebank 1 Nord-Norge has sold all shares in North-West 1 Allicance Bank.
January 05, 2016

The bank says in a stock exchange announcement on Tuesday that the sale is completed.

Sparebank 1 Nord-Norge, with its main office in Tromsø, has lost NOK 300 million (€31 million) in Russia, loan-loss provision that was included in the accountings for 2014.

Sparebank 1 Nord-Norge was one of two Norwegian banks to enter the Russian market. DnB left Russia two years ago, after selling its DnB Monchebank in Murmansk.

North-West 1 Allicance Bank became a subsidiary of Sparebank 1 Nord-Norge in 2010 in a period of time when Norwegian-Russian business relations where growing, espesially in the north where Norwegian companies were lining up to get a share of the long-beleived-to-come Shtokman LGN project in the Barents Sea.

The Norwegians had a 75 percent share of the bank that has its main office in St. Petersburg and a branch office in Murmansk.