Support The Moscow Times!

Russia's VTB in Talks with BoE to Resolve Spat over UK Arm

Russia's No.2 bank VTB is in talks to resolve a dispute with the Bank of England over demands made on its UK business that the bank's CEO suggested could be politically motivated in the light of the West's standoff with Russia over Ukraine.

VTB said a week ago the Bank of England had made demands on its UK subsidiary related to capital and liquidity which were "unjust" although it saw no immediate threat to its business in Britain.

"In relation to our London subsidiary, we are currently in dialogue with the U.K. regulator and expect ... a return to business as usual with the U.K. regulator," chief financial officer Herbert Moos said on a conference call  Tuesday to discuss VTB's three-year strategy.

"We are the only Russian bank in the City of London and we expect to continue to be a successful and profitable bank in the City of London," Moos said.

Moos did not specify which U.K. regulator VTB was in discussions with but VTB later confirmed he was referring to the Bank of England.

The Bank of England declined to comment.

Last week, VTB CEO Andrei Kostin had said in an interview with Russia's Izvestia newspaper that the bank had experienced unusual demands from the Bank of England in relation to its subsidiary which he suspected had political motives.

VTB's UK subsidiary is active in investment banking. Moos said VTB does not provide a break-down of its financial results. Moos also said on Tuesday that VTB does not have a substantial operation in Crimea and does not have plans to develop one.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

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 every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more