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March 16, 2022updated 23 Mar 2022 1:17pm

Russia’s VTB to shutter London investment banking arm amid sanctions

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Russia’s second-largest lender VTB is winding down its London-based arm of its investment banking unit VTB Capital, reported Reuters.

The bank, which fell under the sanctions over Russia’s invasion of Ukraine, is ‘currently proceeding with an orderly wind-down of its positions and obligations’.

The bank laid off some of its staff working at the unit last week.

The bank is planning to retain some of the employees as caretakers as it moves to shutter its London business, Bloomberg reported.

Earlier this month, the UK’s Office of Financial Sanctions Implementation issued a licence that allowed VTB to continue paying its staff until March next year.

It is not clear whether there would be pay cuts. The UK regulators are examining the bank’s books.

The bank has been trimming its London presence in recent years. VTB Capital, which had about 400 staff in London in 2014, reduced employee headcount to around 150 over the years.

Britain froze VTB’s assets shortly after Russia’s ‘military operations’ in Ukraine as part of sanctions to stop the lender from amassing money in London.

This week European regulators announced another round of sanctions, including the prohibition of investments in the Russian energy sector.

Earlier this month, a report by Financial Times said that VTB is planning an exit from Europe in the wake of stringent sanctions.

It was also reported that Germany was seeking to offload the local arm of the bank in a bid to prevent triggering the country’s deposit insurance scheme.

Free Report
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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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