Russia's VTB sells $1bn worth of Bank of Moscow non-core assets

Russia's VTB sells $1bn worth of Bank of Moscow non-core assets
Andrey Borodin, former CEO of Bank of Moscow
By bne IntelliNews November 1, 2016

Russia’s second largest bank VTB bank has sold the non-core assets of the Bank of Moscow (now called BM Bank) worth RUB74bn ($1.2bn), VTB said in a press release on November 1.

VTB took over the Bank of Moscow after it was stripped of some $9bn of assets by its former CEO Andrei Borodin, who fled to London where he now lives in luxury after claiming  political asylum.

Since November 2011, Borodin has been on an Interpol Red Notice, wanted by Russia as a suspect in a RUB13bn fraud committed in Bank of Moscow under his governance. In August 2012, he bought Park Place, Britain’s second most expensive house near Henley-on-Thames.

VTB’s bailout of BM bank led to state support of over $15bn – more than all the funds made available to bail out the entire bank sector in the aftermath of the 2008 financial crisis.

VTB says it will over the last five years have settled the troubled debt of Bank of Moscow worth RUB200bn ($3.1bn).

Among the assets sold were the business group Investlesprom, the iconic Chaika outdoor pool in central Moscow, the assets of agricultural holding Terra-Invest, some assets of the holding MMVZ alcohol, a number of real estate assets and facilities of the Bank of Moscow real estate.

Related Articles

Russian development bank IIB signs off on debut Hungarian credit facility

The Moscow-based International Investment Bank (IIB) announced on August 9 that it has signed off on its debut credit facility in Hungary. The Russian-led IIB decided around five years ... more

Turkish banking industry's likely 2017 profit growth seen at 15-20%

This year's growth in the profits of Turkish banks is expected to be between 15% and 20%, Huseyin Aydin, head of The Banks Association of Turkey (TBB), told media on August 8. Turkish lenders’ ... more

Polish regulator gives RBI new IPO deadline

Polish financial market regulator KNF on August 2 gave Raiffeisen Bank International (RBI) a new deadline of May 15, 2018 to float 15% of its Polish unit. Under the terms of its purchase of the ... more