PARIS: French banking group Societe Generale said Monday it was ceasing activities in Russia and selling its Rosbank unit to an investment firm founded by an oligarch close to the Kremlin.

The exit will cost the firm 3.1 billion euros ($3.4 billion).

Hundreds of foreign companies, ranging from financial firms to retailers and fast-food restaurants, have pulled out of Russia since the February 24 invasion.

But French firms, which are the biggest foreign employers in Russia, have been among the slowest to withdraw, prompting Ukrainian President Volodymyr Zelensky to urge them to leave during an address to the French parliament on March 23.

“Societe Generale ceases its banking and insurance activities in Russia,” the firm said in a statement.

It also announced “the signing of a sale and purchase agreement to sell its entire stake in Rosbank and the Group’s Russian insurance subsidiaries” to Interros Capital, an investment firm founded by one of Russia’s richest oligarchs, Vladimir Potanin.

Potanin, who is close to President Vladimir Putin, is also the co-owner of Russian mining giant Norilsk Nickel.

“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,” Societe Generale said.

The bank said it expects the deal to be completed in the coming weeks and that it was subject to approval from regulators.

Societe Generale shares fell following the announcement but bounced back later in the day.

The bank said it would write off some two billion euros of the net book value of the divested activities and take a further 1.1-billion-euro non-cash hit.

In a separate statement, Interros said that “the conditions for the deal have been approved by the government commission on control over foreign investment in the Russia Federation”.

“Interros intends to do the maximum efforts to develop Rosbank,” Potanin said in his company’s statement.

“The main objective is to maintain the stability of Rosbank, as well as create new opportunities for its clients and partners,” he said.

In a statement, Rosbank said it was “certain” that the firm would maintain its stability thanks to its “expertise” and reliance on “international expertise”.