To negate the impact of sanctions imposed by US and European countries, Russian investment bank VTB Capital is now shifting its focus to Asian markets.
VTB Bank has been banned from raising money in Western capital markets under sanctions triggered by Moscow’s support for rebels in Ukraine. These sanctions have restricted the bank’s access to international capital alongside other Russian state banks and firms.
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Yuri Soloviev, who is chairman of the bank’s board of directors and management board, told Reuters that VTB Capital is seeking to shrink its investment-banking presence in the US following lower demand for its services.
However, the bank is planning to refocus its team in the United Kingdom.
Soloviev added that VTB Capital is also planning to relocate staff around and restructure its teams in an effort to put less emphasis on Western markets.
This year, VTB Capital, which now employs less than 20 staff in the US, has already slashed and moved some staff in London and New York.
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By GlobalDataAdditionally, VTB Capital is seeking to expand its presence in Asia, the Middle East, and Africa, Soloviev said.
"We are moving from a traditional Russia to West distribution platform to one where we originate risk in some places to distribute in others and 40 percent of VTB Capital’s profits came from its international business," Soloviev was quoted as saying by Reuters.
"We are the only DCM franchise in Russia which has organized Hong Kong dollar, local renminbi, Singapore dollar and Aussie issues. I was surprised to see the liquidity in some Asian markets is smaller than in Russia. But with bilateral trade growing, there is hope," Soloviev added.
