Russian bank VTB no longer has control of its European subsidiary, according to the German regulator


FRANKFURT, April 10 (Reuters) – Russian bank VTB (VTBR.MM) can no longer exercise control over its European subsidiary following new sanctions, German regulator BaFin said on Sunday.

The European Union officially adopted new sanctions against Russia on Friday, which will ban a series of imports and also ban all transactions with four Russian banks, including VTB. Read more

BaFin said that as a result of the sanctions, the management of the Frankfurt-based VTB subsidiary is no longer authorized to receive instructions from the parent bank and that the parent company cannot access financial assets or economic resources. of its European unity.

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The measures “result in a complete separation of VTB Bank (Europe) SE from the parent company,” BaFin said.

VTB did not immediately respond to a request for comment.

VTB was one of the Russian banks excluded from the SWIFT messaging system, which dealt a severe blow to its ability to transfer money. Read more

But the new EU sanctions will block all transactions with the bank.

BaFin also said savers who have deposits with VTB’s European branch would still have access to their funds.

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Reporting by Tom Sims Editing by David Goodman and Jane Merriman

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