VTB lost control over its European subsidiary VTB Bank Europe SE

The German regulator banned VTB Bank Europe SE from following the instructions of the parent company, thus the bank lost its voting rights through the European division.On March 8, the European Union banned any transactions involving VTB

The Russian bank VTB has lost control of its European subsidiary VTB Bank Europe SE, which is based in Frankfurt am Main (Germany), follows from the statement of the German Federal Financial Supervisory Authority (BaFin).

“On April 9, the German Federal Financial Supervisory Authority initiated a ban on the exercise of PJSC VTB Bank, St. Petersburg (parent company) voting rights through a subsidiary of VTB Bank Europe SE,” the statement said.

The European Union froze the assets of VTB, Otkritie and Sovcombank Politics

BaFin banned the management of the subsidiary VTB Bank Europe SE from working in accordance with the instructions of the parent company. The department believes that such a move will allow "completely isolate" VTB Bank Europe SE from the HEAD office.

According to the regulator's decision, VTB lost control over the subsidiary and lost the ability to dispose of its financial assets and other economic resources.

VTB Bank (Europe) SE is a single legal entity that was created as a result of the merger of VTB Bank (Austria) AG, VTB Bank (Deutschland) AG and VTB Bank (France) at the end of December 2017 as a result of restructuring. VTB Bank (Europe) SE, in addition to the headquarters in Frankfurt am Main, includes a branch in Vienna and the German online retail platform VTB Direktbank.

Earlier, on April 8, the European Union extended sanctions against VTB and three other banks (according to the European authorities, they account for 23% of the Russian banking sector market). His assets in the EU were frozen, and a complete ban on operations also came into force. The previous version of restrictions against a credit institution provided for its disconnection from the SWIFT interbank data exchange system.

Read on RBC Pro Pro x BLOOMBERG Instead of Visa and Mastercard:how India develops its payment system Articles Pro Why the de-dollarization of the world economy is inevitable.2 main reasons Articles Pro Telecom has lost Western equipment.What awaits Russian companies Articles Pro "NowRUSSIA Pro The EU has not yet approved the rejection of coal from Russia. Why it is difficult to replace it Articles Pro How gas exports for rubles will affect investors:

On March 30, Bloomberg reported that the European subsidiary of VTB, based in Frankfurt am Main, was put up for sale after the imposition of sanctions. The interlocutor of the agency noted that this decision was supported by the German regulator, so the deal can be agreed upon in the near future.

On April 5, VTB head Andrey Kostin said that he did not know about the sale of the European division: “They have frozen everything for now, there is no sale yet, I have not heard about it,” he said.