Russian bank VTB no longer has control of European subsidiary -German regulator -Breaking
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© Reuters. FILE PHOTO – The entrance to VTB’s European headquarters, which appears to have been covered by sanctions following Russia’s invasion in Ukraine. Photographed at Frankfurt’s financial district, Germany on April 5, 2022. REUTERS/Tom Sims/F2/2
FRANKFURT, (Reuters) – In the aftermath of recent sanctions on Russia’s bank VTB, German regulator BaFin stated that VTB cannot exercise control over its European branch.
On Friday, the European Union officially adopted sanctions against Russia. These will prohibit a variety of imports as well as all transactions with Russian banks including VTB.
BaFin announced that VTB’s Frankfurt-based parent bank has banned its management from taking instructions and that VTB cannot gain access to the European financial assets.
BaFin explained that these measures would result in VTB Bank Europe SE being ringfenced from their parent company.
VTB didn’t immediately reply to our request for comment.
VTB was one Russian bank that was exempted from SWIFT, which was detrimental to the ability of VTB to move money.
The new EU sanctions, however, will stop all bank transactions.
BaFin said that VTB’s European subsidiary will still be able to provide access for savers.
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