Support The Moscow Times!

VTB to Restrict Stake Sale to Domestic Exchanges

VTB wants to be a trailblazer by restricting the upcoming sale of the government's stake in the state-owned banking giant to Russian exchanges, CEO Andrei Kostin said Thursday.

President Vladimir Putin said earlier this month that privatization deals should take place within Russia if the country was really committed to transforming Moscow into an international financial center.

"As always, we would like to be a structure that paves the way for others, including listings in Russia," Kostin said, Interfax reported.

The likely location for the expected offer of 10 percent of VTB is the Moscow Exchange, the bourse created by the merger of the MICEX and RTS.

Experts, however, have warned that restricting the deal to Moscow could make the listing less successful. The lion's share of bids for Russia's biggest lender, Sberbank, during its $5.2 billion privatization deal last year were made in London.

But Kostin stressed that none of the details of VTB's privatization were yet fixed.

"This is the market; this is business. It's not just PR," he said. "I am totally flexible. … I don't intend to put any restrictions on myself, not with regards to price, time or form."

Related articles:

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Continue

Read more