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June 30, 2017 www.intellinews.com I Page 3
Slovakia, which had risked losing millions annu- ally from shipping Russian gas that arrives via Ukraine to Europe, had previously objected to the scheme. However, Bratislava signed a new transit deal with Russian gas giant Gazprom in April that will see its revenues guaranteed even if Russia succeeds in circumventing Ukraine’s transmission system.
“Gazprom says it hopes Trump will reject the proposed new US sanctions, but some industry commentators have suggested that the Russian
Russian state lender VTB axes 40 London bankers as losses mount
VTB Group, said the number of its employees had dropped by 12% to 290 from 330, according to a 132-page filing posted on June 26 with UK Companies House. The filing said 39 bankers had been axed in London and another role had gone in Singapore in its latest wave of cuts.
The disclosure shows the biggest casualties in the latest cull include Andrew Cornthwaite, VTB Capital’s head of international global banking, chief operating officer Steve Rice, and director Geoffrey Russell.
“Despite the continued challenges to activity in the Russian investment banking market, VTB Capital has kept its focus on the development
of client operations across all business lines,” VTB chairman Herbert Moos said in the filing. “We continue to explore new opportunities while remaining competitive in both Russia and inter- national markets.”
VTB has become a pariah in Western capital markets over the past two years and slashed hundreds of staff from its office in London and
company would likely go ahead with Nord Stream 2 even if the US restrictions prevent its energy partners from investing in the project,” says Alaco’s Chazan.
“Of probably greater concern for Gazprom
is European opposition. With [Donald Tusk, president of the European Council] indicating that he wants the commission’s mandate to
be as demanding as possible, negotiations with Russia look set to be protracted,” he says.
on Wall Street. Its London office had over 600 employees before the parent group was hit by the onerous sanctions in 2014.
A report in the Financial Times in October last year suggested Brexit complications could force the investment bank to move its European head- quarters out of the UK. Moos told the paper that the bank was considering Frankfurt, Paris and Vienna, while a source close to the bank told bne IntelliNews that Frankfurt is currently favoured. This week’s filing said management continues to monitor the impact of the UK’s exit from the EU on its investment banking activity, although at this stage “it is too early to conclude what this will be”.
Meanwhile, losses continue to mount in London, which also manages other international opera- tions in New York, Hong Kong, Sofia as well as branches in Singapore and Dubai.
The unit reported post-tax losses of $9.6mn in 2016 compared with a similar loss of $9.5mn for the prior year. However, losses are still much lower than 2015 when the bank reported a $92.5mn loss.
Net operating income slumped by 20% during the year, which VTB attributed to “the ongoing impact of the geopolitical situation on market appetite towards Russian and CIS business”.