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VTB, Bank of Moscow, Rosselkhozbank Brush Off Sanctions

Published: July 31, 2014 (Issue # 1822)



  • Russian bank VTB Bank on Wednesday called U.S. sanctions politicized and 'completely inappropriate.'
    Photo: Wikimedia Commons / The St. Petersburg Times

Russian bank VTB Bank on Wednesday declared U.S. sanctions politicized and "completely inappropriate" but said that they will not prevent the bank from raising capital when needed, while Bank of Moscow and Rosselkhozbank, also struck by Washington, said the measures will have little impact on their business.

In an emailed statement, VTB, Russia's second largest banking group, said that the United States' decision was "exclusively politically motivated, unjust, in contradiction of legal frameworks and causing mutual economic damage."

At the same time, VTB said that it "is sure" that it can generate capital abroad when needed, and that the sanctions will not prevent the banking group from fulfilling its obligations to shareholders, clients and investors.

"VTB has a good reputation among international investors and has excellent expertise in borrowing not only on Western markets," the statement said.

The U.S. on Tuesday expanded its economic sanctions against Russia to include VTB, its subsidiary Bank of Moscow and the Russian Agricultural Bank, or Rosselkhozbank. The sanctions will bar U.S. persons and people on U.S. territory from transacting with the targeted banks and providing them with new equity or debt with a maturity period of longer than 90 days.

"In light of Russia's continuing support for separatists in Ukraine, we took additional steps today to further increase financial pressure on the Russian government," U.S. Undersecretary for Terrorism and Financial Intelligence David Cohen said in a statement.

Bank of Moscow, which unlike its parent company is focused almost exclusively on the internal market, said that the sanctions will "not impact business at all."

"Funding from external loans is insignificant and does not exceed 2 percent of the bank's balance sheet," the bank said in a statement, adding that its last loans in foreign currencies were taken out in 2010.

In an online statement, Rosselkhozbank said that it is operating normally and does not expect any negative impact from U.S. or European Union sanctions.

Along with the other targeted banks, "Rosselkhozbank may turn to the Russian government with a request for support, which will be completely reasonable," a member of the bank's advisory committee was quoted as saying.

While Bank of Moscow and Rosselkhozbank responded to all impending sanctions, VTB only addressed those imposed Tuesday by the U.S., ignoring the European Union sanctions that are set to fall on the banks on Thursday.

The EU member states agreed on Tuesday to bar European people and companies from buying or sell new bonds, equity and other financial instruments with maturity periods of longer than 90 days to majority state-owned Russian banks and their subsidiaries.





 


ALL ABOUT TOWN

Saturday, Dec. 20


The city’s Babushkina Park on Prospekt Obukhovskoy Oborony will be invaded by dozens of rocking-and-rolling Santa Clauses during today’s Santa Claus Parade. Not only will they parade through the park but there will also be competitions amongst the festively-clad participants and a musical master class. There will also be a prize for the best-dressed Santa Claus.


Add to your record collection during the Vinyl Christmas Sale at the KL10TCH bar on Konyushennaya Ploshchad today. Spend the afternoon perusing the records for sale while listening the classic, clean sound of records spinning out hits from a variety of musical genres and time periods.



Sunday, Dec. 21


The Zenit St. Petersburg basketball team returns to the northern capital this evening for a matchup with Krasny Oktyabr, a Volgograd-based basketball club. Tickets for the game, which tips off at 6 p.m. this evening, can be purchased on the club’s website or at their arena, Sibur Arena, on Krestovsky island.


Satisfy your sugar cravings during Sweet New Year, an ongoing seasonal festival at the Raduga shopping center. Each weekend of December will welcome hungry visitors to taste hundreds of different kinds of desserts made from a plethora of sweet treats. Workshops are open to visitors and seasonal gifts can also be purchased for those rushing to finish their New Year shopping.



Monday, Dec. 22


Pick out the latest fashions as holiday gifts for loved ones or as early presents for yourself during the Christmas Design Sale at Kraft on Obvodny Kanal, starting on Dec. 20 and continuing through Dec. 27. Designer clothes will be on sale every day of the week or you can buy something more festive to decorate the home while sipping on hot coffee and perusing the various master classes.



Tuesday, Dec. 23


Meet Arctic explorers Fedor Konukhov and Viktor Simonov during SPIBA’s and Capital Legal Service’s event “Arctic Expedition” this morning in the Mertens House business center at 21 Nevsky Prospekt. The meeting will discuss the explorers’ ongoing eco-social project and how companies can use the project as a unique marketing opportunity. Email office@spiba.ru by Dec. 22 if you wish to attend.



Wednesday, Dec. 24


The Anglican Church of St. Petersburg we will be holding a Christmas Eve service at 7 p.m. led by Rev Wm. Shepley Curtis of the Episcopal Church. The service will be held at the Swedish Church at 1/3 Malaya Konyushennaya Ulitsa.



To have your event included in All About Town, email tot@sptimes.ru



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