#AceFinanceNews – UKRAINE – April 18 – Several Russian companies are withdrawing their business from Ukrainian TV ads due to the unstable political situation and looming economic crisis, Russian newspaper Izvestiya reported, citing Media First Ukraine director Roman Shihutsko.
Some of the companies that will no longer be investing into Ukrainian ads include Yandex, MTS, Alfa-Bank, and VTB.
#AceFinanceNews – MOSCOW – April 10 – VTB, one of Russia’s biggest banks, is looking at winding up its business in Serbia, India and Vietnam, VTB CEO Andrei Kostin told a news conference on Thursday.
“We are not planning to expand our activity at foreign subsidiaries, moreover, we are scaling down our presence in some countries,” he said. We do not plan to expand our activity in Western Europe either.”
#AceFinanceNews – MOSCOW- April 10 – VTB chief Andrei Kostin mentioned “politically motivated” complexities which the Bank of England brings about for the operations of the London-based subsidiary bank VTB Capital.
“Over the recent weeks, we have been experiencing a very strong pressure on the part of the Bank of England with regard to our bank VTB Capital.
This is the only Russian bank with a full license.
Attempts are being made to place demands on us, the demands that are incompatible with the regular supervision practice,” Kostin pointed out in an interview published in the newspaper Izvestia on Thursday.
“We applied to the Central Bank of the Russian Federation (CBRF) in a request to render assistance in talks with the Bank of England, because those demands do not conform to a professional approach. They contain, rather, a large share of political motivation.
All verifications testified to the fact that the bank is reliable and stable and does not bring problems for the UK financial sector.”
The chief of the VTB Group sets hope on the possibility to prove that “this kind of actions with regard to the Russian bank in the UK is not quite compatible with international norms of supervision”.
In response to a question whether VTB plans to seek Russian government’s protection, Kostin said, “We are operating on the territory of another state and in line with UK law which we do not break. I consider that talks through the CBRF will be the most effective.”
#AceFinanceNews says according to latest reports in MOSCOW, February 06. /ITAR-TASS/. US regulators’ struggle for a clear banking system caught up with the major Russian market players. According to Kommersant daily, JP Morgan denied Sberbank and VTB the right to make transactions of customer payments since the US bank revised approach transparency of operations.
Meanwhile, JP Morgan is not as suspicious about most of other Russian banks — obviously, according to the law of large numbers, the paper says.
According to the paper’s source, the US partner notified the banks of ceasing their operations with customer payments, though continued its own treasury transactions with Sberbank and VTB.
In effect, the paper says, the banks transferred all customer transactions to Bank of America and Bank of New York (Sberbank) and Citi and Bank of America (VTB). VTB is going to take treasury transactions out of JP Morgan, whereas Sberbank plans to continue such partnership.
Actions of JP Morgan, which is one the banks that leads by the number of the US authorities’ complaints, are comprehensible. Last year alone JP Morgan paid financial regulators about $20 billion for various violations on mortgage-backed securities. This year the bank is to pay another fine of $2.6 billion for failure to notify the authorities of suspicious customer transactions. Under such circumstances, the bank’s selective refusal to cooperate raised eyebrows in the market as procedure remained unchanged for a number of other Russian banks holding correspondent accounts in JP Morgan.
It may be the business scale of the Russian leading banks that caused such a coolness in JP Morgan attitude, the paper says.
Along with the maximal number of customer transactions as compared to other Russian banks, Sberbank and VTB carry out a large number of operations in the interests of smaller banks holding correspondent accounts in these banks and unable to open them in US banks.