Prague - Petr Kellner, the richest Czech citizen, sees another investment opportunity in the Russian market - this time in the insurance sector.
According to E15, a Czech daily, Italian insurance company Generali considers starting a new joint project with VTB, Russia's second largest bank. The project would be focused on insurance.
Petr Kellner is considered the richest Czech, and in 2010 Forbes magazine listed him as the 89th richest man on the planet.
Read more: No deal for Czech billionaire Kellner
Read more: Richest Czech gets richer with a lifetime deal
Kellner's investment group PPF would directly participate on the deal via Generali PPF Holding, because PPF has agreed with Generali that the Italian insurance company can invest in Russia's insurance sector only in joint projects with PPF. The same deal covers also other countries of Central and Eastern Europe.
"Generali confirms exclusive rights to act in these countries through Generali PPF Holding," said the press office of Generali's Trieste headquarters to E15. Andrey Kostin, chairman of Russian state-owned bank VTB, confirmed that a preliminary memorandum with Generali has been signed.
"We are aware of it, it reflects agreements signed when Generali PPF Holding was established," said PPF spokesman Milan Tománek to E15.
No details about the deal have been revealed yet. According to E15's analysis of available sources, the deal could strengthen Kellner's position in the Russian market and possibly even solve the dead-end situation around Ingosstrach, a Russian insurance company.
Read more: Tatra to sell trucks and military vehicles to Russia
Read more: Czech energy security under influence of Russian Lukoil
Kellner's PPF is engaged in a long-term legal battle with Oleg Deripaska, a Russian businessman who is Ingosstrach's majority shareholder, over the control of the company.
According to the information available to E15, the owners of PPF will throw their share in Ingosstrach into the deal, which would change the situation - Russia's central bank would de-facto gain a share in Ingosstrach.
It is highly possible that Petr Kellner and Giovanni Perissinotto, Generali's CEO, are the masterminds of the planned joint project with VTB.
The second most important PPF shareholder Jiří Šmejc recently confirmed that the Czech investment group is looking for a new partner in the Russian market. PPF have already negotiated with VTB over an investment in Russian Home Credit, which is Kellner's most expensive asset in Russia, worth CZK 69bil (EUR 2.8bil).
Russia is a member country of the group of large emerging economies, called the BRICS group. The other members are Brazil, India, China, and South Africa.
Current agreements about Generali PPF Holding are valid until 2014. After that date, PPF can use the option to leave the group, wrote E15.
