Shares of VTB and Rosselhozbank will be acquired with the funds of FNB

22.08.2014

Russian Government issued a Decree №839 “On acquiring of privileged shares of credit organization with funds of Fund of national welfare”.

In the Decree Russian Government regulates the buying of privileged shares by the closed subscription of such financial organizations as Bank VTB and OAO “Rosselhozbank” for the amount around 239 billions of rubles.

The funds of FNB, which were returned after performance by this financial organizations and also by OAO “Bank of Moscow” and VTB24(ZAO) of their obligations before Vneshekonombank with regards to subordinated loans, will be used in order to acquire the shares.

Source:: http://government.ru/media/files/41d4fe1658bad72c008c.pdf

Expert’s opinion

As we remember, in the light of recent events VTB and Rosselhozbank ended up in the list of banks, to which the sanctions form EU and USA are applicable. (http://hbcomp.ru/about/news_and_mailings/news_jurisdictions/?ELEMENT_ID=4130). Both banks are not the last ones on the Russian financial market. The exit to the European financial market is limited for now. Therefore, in order to increase the capital of this financial organizations the additional emission of privileged shares will took place. This shares will be bought by the state. It is possible that the same will be done to the other banks on the list.

Anna Shevchenko ( Lawyer, Honest & Bright)