VTB will leave from the Ukrainian market losses

VTB will sell its Ukrainian “daughter” with losses as prospects of development of business in Ukraine, said the head of VTB Andrey Kostin.

“Our goal is to minimize losses. We are big efforts to make the most of today to recover all the funds that we have issued, and to minimize possible losses. Today sale with no loss is impossible”, — said Kostin (quote “Prime”).

He also said that in the near future can be closed, the Bank BM Ukraine (former Ukrainian Bank of Moscow), owned by the VTB group, reports “Interfax”.

“In order for the Bank to maintain, we wanted to capitalize, but the Ukrainian leadership, where even the security Council had a meeting and they are strongly against any change because of the sanctions. And we were told that we would have exactly this Bank to close in the coming months, which, in my opinion, reflect poorly on the banking sector of Ukraine”, — said Kostin.

On the likely sale of the Ukrainian business Kostin said in may. “As for Ukraine, we bear substantial losses. I think if we had a chance we’d even sold the business, than it would be increased or maintained, because we do not see any opportunities there,” gave the words Kostina RIA Novosti”.

In June 2015 the senior Vice President of VTB Mikhail Yakunin said that “VTB-Ukraine” plans to reduce their presence from 60 to 50. In mid-may of this year, VTB said that the group sees no prospects for the development of its business in Ukraine because of the large losses which there bears a subsidiary and is ready to sell it. However, in the summer of this year, Deputy Chairman of VTB Herbert Moos said that VTB has suspended plans to sell Ukrainian assets.

As of 30 June, the assets of “VTB-Ukraine” to $ 21 billion (14-th place by assets). Bank BM Ukraine” is small — its assets, as of June 30, amount to just 3 billion hryvnia (38-th place by assets). In the second quarter of this year, both the Bank unprofitable. The loss of “VTB-Ukraine” made up 4.96 billion, and BM Ukraine” — 349 million hryvnia.

Prospects of business development in Ukraine for Russian state-owned banks is not, says Fitch analyst Alexander Danilov. “They may want to sell their Ukrainian assets, but to do it without significant losses will be extremely problematic,” he said.

According to the economist “PF Capital” Eugene Nadorshin, sales of Ukrainian assets to Russian state companies is an issue solved in 2014, but to search for buyers takes time. “In the hands of a private investor of these assets will be extracted much more benefit than running the Russian state-owned companies, because the conflict with Ukraine is of a protracted nature and it is unknown when will it end”, — says Nadorshin.

Ukrainian “daughter” of other banks

On the negotiations for the sale of its Ukrainian “daughter” announced earlier Vnesheconombank (VEB). To withdraw from the region, the Corporation expects to mid-2017, said the Chairman of the Bank Sergey Gorkov. And the reason of sale, he pointed out that the management of commercial Bank is not the mission of the Institute development. “We must free ourselves from our commercial banks,” — said the new head of the Bank. As said on Friday, September 2, the press-service of the Corporation, negotiations with investors are still ongoing, but the progress in the Bank does not comment.

In late may, “Kommersant” with reference to sources wrote about the intentions of the savings Bank to leave the market, but the Chairman of the Bank Alexander Morozov later said that Sberbank does not have specific plans for the sale of a daughter. On Friday in the press service said that Sberbank has no plans to exit the business in Ukraine.

In the beginning of the year investment holding company ABH Holdings (operating company is the Russian Alfa-Bank) has agreed with UniCredit on acquisition of Ukrsotsbank in exchange for a minority stake in ABH Holdings S. A. on August 9 ABH Holdings S. A. and the UniCredit group have signed a Memorandum of understanding regarding negotiations on the possible sale of the Ukrainian owned by UniCredit of Ukrsotsbank in exchange for minority shares of ABH Holdings S. A., which includes Alfa-Bank. Now in the Bank awaiting the approval of an agreement with the regulator, said in a press-service of Alfa Bank.

In June of this year, Alfa Group acquired a Cyprus business NEOs Bank in Ukraine. After the successful integration of retail and corporate business and Ukrainian Alfa-Bank, of the Bank’s reorganization and sale of certain assets of the NEOs shares of the Bank were sold in accordance with the original strategy of the project, said the press service of the Ukrainian Alfa-Bank.