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French bank Societe Generale logo is seen on the facade of a building in Paris, November 7, 2013.
French bank Societe Generale logo is seen on the facade of a building in Paris, November 7, 2013.
(Jacky Naegelen/Reuters)

SocGen feels the sting of political risk in Russia

Societe Generale has been hit by Russian sanctions – of the self-inflicted type. The French bank said it booked a €525-million ($797.3-million) goodwill impairment on its Moscow-based unit in the first quarter of the year. That’s the third hit it has taken on its investment since 2008, when SocGen started building up its stake in the bank once owned by duelling Russian oligarchs Vladimir Potanin and Mikhail Prokhorov. It was enough to send the French bank’s net profit down 13 per cent in the quarter, to €315-million.