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 / Photo by CC
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.

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