‘The fact that Sverdlovsk Region government sold its share in the authorized capital of Sverdlovsk Gubernskiy Bank has been affecting the bank badly, since more than 50% of its performance solely depends on the regional government’s budget and support. The bank has no niche on the Ural financial market and is not likely to get one any time soon,’ Director of Institute of Economics of the Ural branch of RAS Alexander Tatarkin said to UrBC.

In the meantime, the regional Minister for Public Property Management Alexei Molotkov announced at Sverdlovsk Region Duma’s extraordinary meeting on March 20, 2007 that 94,500 RUR could be spent on buying the additional share issue of Sverdlovsk Gubernskiy Bank.

Mr. Tatarkin claims it is illegal for civil bodies to do so; he says the local government’s plan to acquire a share in the bank’s authorized capital might mean it wants to regulate the banking policies within the region to make them suit the local needs. Another explanation is that Sverdlovsk Gubernskiy Bank is seen as a would-be ‘pocket bank’.

A committee of experts from Ural Regional Legislation Institute looked at the project on March 13, 2007 and questioned the legitimacy of buying the bank’s shares, since the Russian Federation subjects are not allowed to buy stocks of close joint stock companies.