East-West United Bank was incorporated in Luxembourg on 12 June 1974, representing the Soviet Union’s interests in the Benelux countries. Following the collapse of the Soviet Union in 1992, a 49% stake was sold to Russia-based Imperial Bank. In 2002, Sistema took full ownership of the bank. As of 2022, EWUB reported over 80 employees and offered services in portfolio management, investment advisory services, as well as corporate lending. In October, , citing the war in Ukraine and the sanctions imposed on Russia, which created ‘unprecedented challenges’ for the bank.

According to EWUB’s 2021 annual report, the bank had total assets of €724m and a net operating loss of €1.3m. Loans and advances to customers amounted to €221m, which represented 31% of total assets in 2021, according to the auditor EY.

The Sistema group decided as early as October 2022 to sell its 100% stake in EWUB, but the transaction value will be determined based on the results of an independent appraisal. The transaction is planned to be completed in 2023, with no specific timeline given. As of Q4 2022, Sistema classified EWUB assets as ‘held for sale’ and presented them as ‘discontinued operations’ with an expected loss of RUB 1.474bn (€16.37m at current exchange rates).

Acquired in 1976, . At the time of publication of this article, no statement had been received from EWUB and Sistema declined to comment on the possible sale or the future of Villa Foch.