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Russia to bail out Trust Bank with up to $530 million

Russia's Central Bank
Andrey Rudakov | Bloomberg | Getty Images

Russia's central bank said it would will provide a mid-sized bank to with up to 30 billion rubles ($530 million) to stop it going bankrupt, in the first bailout of its kind during the current ruble crisis.

The central bank's Deposit Insurance Agency, responsible for managing crisis-hit lenders, would also take over supervision of Trust Bank as of Monday, it said in a statement.

In all Russia's banking sector, under increasing pressure from a plummeting ruble and western sanctions over Ukraine, could get a capital boost of up to 1 trillion rubles under a new law being prepared by the government.

The central bank will soon choose a leading investor for bailing out Trust Bank, which is likely to be one of the country's major banks, it said.

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