Russia hit by US$3.4b Promsvyazbank bailout in latest bank blow

Moscow

RUSSIA'S central bank may have to sink up to US$3.4 billion into its bailout on Friday of Promsvyazbank (PSB), the country's 10th largest private lender, the third such rescue this year.

The bailouts mark the biggest challenge to Russia's financial sector since a financial crisis 20 years ago and show how the country and its banks are grappling with the economic impact of lower oil prices and Western sanctions.