Russia’s largest bank Sberbank has opened a commodity market trading company based in Zug, Switzerland, as part of the bank’s strategy to expand this business line, the company said in a statement on May 29.
Sber Trading Swiss AG will become the main hub of Sberbank's international physical commodity trading, the bank said. Denis Lunin has been appointed CEO. Previously he was responsible for physical commodities and fixed income business development in a number of Russian and international banks.
Sberbank already has a physical commodity trading infrastructure in precious metals under its subsidiary PAO Sberbank, and the local physical trading house OOO SB Commodities Trading.
“Sber Trading Swiss AG will focus on international physical commodity trading in oil and oil products, coal, base metals, bulk and agriculture products,” the bank said. “The company’s strategy is to build on [the] existing customer relationships between Sberbank and commodity producers and consumers in Russia and the CIS. It will allow Sberbank Group to scale up and diversify its presence in physical commodities markets.”
Sber Trading Swiss AG is offering its clients the international purchase and sale of physical commodities, including storage, transportation and distribution, as well as financing for deals. It can also monetise reserves for oil and crude oil products, base metals, bulk and agricultural products in a “commodity repo.”
“By opening our own international trading company, we have moved to a new level in physical commodity trading. We expect Sber Trading Swiss AG to strengthen our position as one of the largest providers of solutions for our clients in international and local commodity trading, structural financing and strategic hedging. The company will focus on international trading in oil and oil products, coal, base metals, bulk and agricultural products. We are planning to work primarily with the Sberbank clients, producers and consumers of raw materials in Russia and the CIS countries, and expect the first transactions to be conducted in the third quarter of this year,” said Anatoly Popov, deputy chairman of the executive board of Sberbank.