Dresdner to buy into Gazprombank

Gazprombank appears to have global ambition

Germany's Dresdner Bank is buying one-third of Russia's Gazprombank for $800m (£460m), the two banks have said.

Both said the deal was aimed at boosting Gazprombank's capital strength ahead of a share offering sometime in the "medium term".

The deal values Gazprombank - owned by gas monopoly Gazprom - at $2.4bn and is the largest foreign investment in Russia's banking sector.

Dresdner is a unit of German insurance giant Allianz.

The deal is expected to be concluded early in the New Year.

It is the second major Russian banking sale to a German buyer this week, after Deutsche said it would buy the remaining 60% stake in brokerage United Financial Group (UFG) that it does not already own.