Gazprombank’s Luxembourg subsidiary, GPB International S.A., posted a record net profit of 61.4 million euros in 2022, more than three times its previous best year. Foreign exchange trading was the engine behind this exceptional performance, generating over 55 million euros, accounting for roughly 90% of the operating income that year. However, profitability collapsed in 2023, falling to just 6.1 million euros, while the corporate loan portfolio shrank from 609 million to 222 million euros and the bank severed approximately 40 client relationships under increased regulatory pressure. In late 2024, the US Office of Foreign Assets Control (OFAC) sanctioned the Luxembourg entity, permanently cutting off its access to the dollar-denominated financial system.
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