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anticipated boost from strategic asset sales in the second quarter is expected to drive further profit growth. This projection aligns with VTB's ongoing efforts to maintain robust profitability amid a challenging economic environment.
VTB Group expects to add RUB16bn ($187mn) to its net profit in June
from the sale of part of its blocked assets to an external party, First Deputy Chairman of the Management Board Dmitry Pianov announced.
"We have finalised all our agreements with an external party. This is a Russian counterparty though we have no right to name it. Consequently, the transaction involves sale by VTB Bank of rights, or transfer of rights, any you like, for money flows from blocked assets. Sale at a discount," Pianov said. "Considering the fact that this may be not the last transaction, we would not like to disclose the amount of discount. This is why in this situation I’m ready to tell you that in terms of post-tax net profit, there will be 16bn worth of extraordinary profit from this deal in June," he added.
Pianov previously mentioned that VTB planned to complete the sale of some blocked assets to an external legal entity in June. The bank has approximately RUB900bn ($9.7bn) in assets frozen due to sanctions. To address these restrictions, VTB is exploring four strategies, including selling parts of the blocked assets to third parties.
VTB was blacklisted by the US and UK in the spring of 2022, with the EU imposing similar sanctions. These restrictions freeze the bank’s assets and prohibit fiscal residents of the sanctioning countries from executing transactions involving these assets.
HSBC has transferred ownership of its Russian unit to Expobank for an undisclosed fee, the two lenders said on Wednesday, ending around two years of negotiations and uncertainty Reuters reports on May 30. HSBC's exit from Russia has been on the cards since February, when Russian President Vladimir Putin gave approval for the asset sale to privately owned Expobank to go ahead. Expobank said it had successfully completed the deal. HSBC later confirmed that it had transferred ownership of the business to the Russian lender.
Sanctioned VTB Bank to Open Branches in Occupied Ukraine The new local branches will serve customers in the occupied cities of Mariupol, Donetsk and Luhansk.
Russian subsidiary of Bank of China stops accepting payments from Russian banks, sources say. According to Kommersant's sources, Bank of China will refuse to accept payments from any sanctioned Russian bank starting on June 24.
Russia is interested in opening representative offices of Russian banks
122 RUSSIA Country Report July 2024 www.intellinews.com