The FINANCIAL -- American International Group, Inc. (AIG) on June 29 announced that it has entered into an agreement to sell 98 percent of the shares in its consumer finance operations in Russia, consisting of OOO AIG Bank (RUS), with an option, not exercisable until mid-March 2011, for the sale of the remaining two percent, to Banque PSA Finance SA (a 100 percent- owned subsidiary of PSA Peugeot Citroën Group).

The transaction is subject to the satisfaction of certain conditions, including approval by the Central Bank of Russia.

OOO AIG Bank (RUS) was established in June 2008 and currently employs a dozen employees. Terms of the transaction were not disclosed.

Deutsche Bank acted as financial advisor and Debevoise & Plimpton served as legal counsel to AIG on this transaction. CMS in Russia served as legal counsel to Banque PSA Finance.

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