Filenews 26 February 2022 - by TheanoThiopoulou
In an effort to disengage from the sanctions imposed on Russian banks, including the state-owned VTB Bank (PJSC), RCB Bank decided to transfer the shares of VTB Bank (PJSC) to the bank, at a rate of 46.29%, to other existing Cypriot shareholders of the bank representing the management of RCB Bank.
According to an announcement by RCB Bank, on Thursday night, the same day that the Russian military operation began in Ukraine and sanctions were announced by the US and the UK, it was decided to transfer the shares of VTB Bank (PJSC) to RCB Bank (46.29%) to the other shareholders. Following these developments, RCB Bank becomes a purely Cypriot bank and distances itself from any sanctions that would hit one of its major shareholders, which is a State-owned Russian Bank (VTB Bank). In the announcement of RCB Bank it is noted that "following this development, and subject to the consent of the supervisory authorities, the shareholding structure of RCB Bank is now composed exclusively of private Cypriot shareholders from the bank's management".
The developments were almost expected for RCB Bank and according to information from "F" there was concern from the previous days at the supervisory and political level whether there would be sanctions on banks that have a shareholding relationship with Russian banks. With the move for the shares to pass from the Russian parent to the Cypriot shareholders, any concern was removed.
A statement from VTB Bank broadcast by Reuters said the bank was preparing for the most difficult scenario and worked out several plans to minimise the impact of sanctions on its customers.
The Russian news agency Interfax reported that the Russian bank VTB, which is facing sanctions from the West, is restructuring its funds to minimize the risk of the new measures. Among the restructurings, according to Interfax, was the sale of 46% of the shares held by VTB in RCB Bank in Cyprus.
On the evening of Thursday, February 24, 2022, the United States of America together with the EU and England imposed economic sanctions on Russia. British Prime Minister Boris Johnson, speaking of the "largest and strictest" package of sanctions "russia has ever seen", announced, among other things, the complete freezing of the assets of Russian state-owned bank VTB, with a total assets of 154 billion pounds.
Later, the US President, Joe Biden, after concluding the extraordinary G7 summit via video conference and in the light of the Russian invasion of Ukraine, announced the sanctions imposed on Russia. Among other things, it announced the sanctions of a complete blockade on VTB Bank, Russia's second-largest bank, and 20 of its subsidiaries.
The President of the European Commission, von der Leyen, stressed on Thursday that, as part of the sanctions, Russian assets in Europe will be frozen and Russian banks' access to European capital markets and all of the above will be stopped in close consultation with the US, the UK, Canada, Japan and Australia.