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French banking group Societe Generale has signed a deal to sell its banking and insurance business in Russia.

The move, which will cost Societe Generale around €3.1bn ($3.3bn), will mark its exit from the Russian market.

As per the terms of the deal, the French firm will divest its entire stake in Rosbank and sell its insurance subsidiaries to Interros Capital, which is linked to Russian oligarch Vladimir Potanin, for an undisclosed sum.

The Russian invasion of Ukraine and the retaliatory sanctions have triggered a mass exodus of foreign firms operating in Russia and Societe Generale has become the first major European financial group to exit Russia.

“With this agreement, concluded after several weeks of intensive work, the group would exit in an effective and orderly manner from Russia, ensuring continuity for its employees and clients,” the lender’s statement read.

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The divesture of Rosbank, which is 99.97%-owned by the lender and insurance subsidiaries, will shave off around 20 basis points from the group’s CET1 ratio.

Societe Generale stated that the €3.1bn write-off is comprised of €2bn of the net book value of divested assets and the other €1.1bn hit comes from the reversal of rouble conversion reserves.

The deal is yet to receive regulatory approval and is expected to close in the coming weeks.

Rosbank would remain the preferred partner of Societe Generale in Russia, Interros Capital said in a statement.

Interros president Vladimir Potanin said: “Interros will do its utmost to develop Rosbank business, it considers the integration of digital technologies and products into the traditional banking services as a priority. The key objective of Interros is to maintain the stability of Rosbank and to create new opportunities for its clients and partners.

“We are confident that the professional Rosbank team is able to cope with any challenges and ensure sustainable development of the bank”.