Russia’s VTB Bank admits it has difficulties selling its subsidiaries in Ukraine
The Russian banking group VTB cannot sell two of its subsidiary banks in Ukraine: VTB and BM Bank. This was stated on the sidelines of the Eastern Economic Forum by the head of VTB, Andrey Kostin.
"We will reduce the size of business and expenses, sell the assets little by little, take back loans, and sell all kinds of collateral. And withdraw from there. No one will allow anything to be sold there, probably," Kostin said.
VTB Group in May last year announced its intention to sell Ukrainian banks in case there were any attractive offers. However, by June VTB management reported that it had suspended the active search for buyers. Talks about the withdrawal of the group from the Ukrainian market resumed in March 2017 after Kyiv imposed sanctions against Ukrainian banks with Russian capital. The restrictions imposed for the year prevent them from carrying out any financial transactions in favor of the parent structures.
VTB management has repeatedly stated that the Ukrainian authorities do not want the sale of banks. The National Bank of Ukraine has not approved a single application from potential buyers to date.