The head of VTB-24 considers that the wiser to privatize state-owned banks after the lifting of sanctions

The head of VTB-24 considers that the wiser to privatize state-owned banks after the lifting of sanctions

MOSCOW, February 22. The crisis of the Russian economy and US sanctions and the EU scare off potential buyers of the assets of state-owned banks. This opinion was expressed by the President-Chairman of the Board VTB-24 Michael Zadornov on air of TV channel “Rain”.

“Banks are not an asset which can and should be privatized in the period when the countries under the sectoral sanctions,” – said Zadornov. “It would be more rational to do it during the lifting of sanctions and the beginning of economic recovery,” he said.

“When a country is under sanctions that virtually cut off the foreign investor, and not many free financial resources of companies”, – continued the head of VTB-24. “You can sell some share of Sberbank or VTB, but now they are in great demand? It is clear that the demand will be only within the country,” – said Zadornov.

According to him, there is a risk that assets will be purchased for resale non-leaf owners. In addition, customers can bring in privatisation than its own resources and the funds of state-owned banks.

However, the head of VTB-24, is convinced that “privatization in Russia now, of course, necessary”. “The crisis has meant that there has been a substantial redistribution of property in favor of state-owned companies. State-owned banks largely assumed non-core assets that they hold on balance since the last crisis as compensation for the loans,” he explained.

Real privatization in the banking sector Zadornov believes lowering the state’s share in equity below 50%. “If the government is not going to reduce the percentage below 50%, then it is “conditional privatization”, because the control will still remain with the state”, – concluded the head of VTB-24.

Earlier, the head of the Ministry of economic development Alexei Ulyukayev confirmed that in 2016 it is planned to sell packages of shares of “Rosneft”, “ALROSA”, “Bashneft”, VTB Bank, “Sovkomflot”.

The Minister said that “in the near term we are talking about VTB Bank”. “Now the government owns 60,9%, respectively talking about the sale of 10,9%,” – said Ulyukayev.

See also

All sanctions of the West against Russia