The privatization of VTB decided to postpone the lifting of sanctions

Andrey Kostin and Anton Siluanov (left to right)

Photo: Mikhail Japaridze / TASS

Russia’s Finance Minister Anton Siluanov said that VTB privatisation was postponed until the lifting of sanctions. Previously it acted as officials, and the management of the Bank

The authorities decided to postpone the privatization of VTB Bank as long as the sanctions are lifted. This was announced on Wednesday, February 15, Finance Minister Anton Siluanov.

“If the sanctions will be lifted, the package VTB will be more expensive. That is why we have postponed the sale of the VTB stake to a later period, when maybe the ratio will improve,” — said Siluanov (quoted by Interfax).

On Wednesday, the government approved the forecast plan of privatization of Federal property for 2017-2019. According to him, it is planned to reduce the state’s stake in VTB to 25% plus one share of total number of shares of common stock.

VTB Bank was hit by Western sanctions in 2014. Officials and the Bank’s management opposed the privatization until the abolition of the sanctions regime. So, the head of VTB Andrey Kostin at a recent forum in Davos said that the Bank’s management believes the opportunity for privatization in 2017 in the event of a change in the sanctions regime.

“If the sanctions are modified or mitigated or will signal to the market and investors will not be afraid to engage in such transactions, of course, we believe that the sale of shares less than 11% is quite possible,” — said Kostin.

Deputy Prime Minister Igor Shuvalov spoke a similar position. He said he sees no need to sell VTB in 2017. “I don’t see the need to sell VTB in 2017. At “Rosneft” Igor Sechin from the very beginning were confident that investors will come. With VTB, the situation is different: it is not clear who can be an investor and whether it makes sense,” — said Shuvalov at the world economic forum in Davos.

Leave a Reply

Your email address will not be published. Required fields are marked *