Russia's sanctioned VTB Bank leaving Georgian market

  • The Georgian branch of Russia’s state-owned VTB Bank is leaving the Georgian market, Andrey Kostin, the President and Chairman of the Bank's Management Board, told Russian news agency Interfax. Photo: news.az

Agenda.ge, 21 Jun 2022 - 13:45, Tbilisi,Georgia

The Georgian branch of Russia’s state-owned VTB Bank is leaving the Georgian market, Andrey Kostin, the President and Chairman of the Bank's Management Board, told Russian news agency Interfax. 

Kostin said the Bank had decided to only leave the Georgian market from countries it is present in, as "the situation in this country is a bit different".

VTB continues to operate in Azerbaijan, Armenia, Belarus, Kazakhstan, China, and India. We see prospects for the development of our business in these countries. We are only leaving Georgia. The situation in this country is a bit different", Kostin said.

The Georgian branch of VTB Bank was banned from servicing individuals, borrowers, and depositories after international financial sanctions imposed on Russia over its war in Ukraine. The Bank's retail loan and deposit portfolios were transferred to the Georgian-based BasisBank, and its service portfolio for legal entities to Liberty Bank, also based in the country.

Last year the National Bank of Georgia fined VTB Bank’s Georgian branch ₾70,000 (about $23,931/€22,623) for several cases of money laundering and terrorism financing.

In its current form, VTB Bank Georgia was established in 1995 through a merger of three state commercial banks, while JSC VTB Bank Georgia became a member of the International Financial Group VTB starting in 2005.

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