Russian banking TCS Group Holding, which operates the country’s only pure online bank Tinkoff, has suspended the trading of its depository receipts on the Moscow Exchange (MOEX) from February 20, as part of the redomiciliation efforts by the holding, Renaissance Capital writes.

This is in line with previous coverage of bne IntelliNews that closely followed Russian official efforts to repatriate businesses. Most recently several corporate majors announced redomicilation to unblock corporate procedures, most notably dividend payments.

TCS intends to retain its listing on the Moscow Exchange after the re-registration and conversion of its shares. Depositary receipts, the rights to which are accounted for by Russian depositories, will be automatically converted into shares of TCS Holding, with the conversion to be completed by the end of 1Q24.

As followed by bne IntelliNews, TCS Group is controlled by Interros of sanctioned Vladimir Potanin, who bought the bank from the exiled founder Oleg Tinkov. As yet unsanctioned Potanin was picking up exiting Western assets and rebuilding his banking empire.

In 2022 Tinkoff remained profitable, remaining one of the largest unsanctioned private banks. Tinkoff alone maintained a RUB21bn profit under IFRS, albeit down 3-fold year on year. In 1Q23 alone, TCS Group posted RUB16.2bn profit. Tinkoff, an online bank, serves over 28mn retail customers.

In July 2023 the US sanctioned the Tinkoff Bank, but not its parent structure TCS Group. The analysts surveyed by RBC business portal believed that Tikoff is well prepared for disruptions of operations with foreign correspondent banks. In 2022, Tinkoff had already significantly cleared its balance sheet of assets in US dollars and euros. 

On the same day as Tinkoff Bank was put on the US SDN List, the founder and former owner of Tinkoff Oleg Tinkov was cleared of sanctions by the UK.