Russian state-owned VTB Bank has failed to sell its Ukrainian subsidiary, Russian newspaper Kommersant reported, citing several sources close to the bank.
”Since May, when VTB Head Andrey Kostin announced plans to sell its Ukrainian subsidiary, the group has actively undertaken work in this direction. There were two potential buyers showing interest in the asset – SCM Group and Taskombank,” said a source.
Another source confirmed that negotiations had taken place.
However, he said that they were not successful.
”Estimates of the potential buyers and the seller varied so considerably that the parties were not able to reach an agreement,” the source said.
Sources also told the newspaper that the failure to sell the Ukrainian subsidiary has encouraged VTB group look to other options in leaving Ukraine`s market.
”VTB is looking for buyers for a loan portfolio held by its Ukrainian subsidiary, so as not to leave the market empty-handed,” one of the sources said.
The VTB press service declined to comment on the issue, adding only that the bank ”is considering various business scenarios” in the country.
As reported by UNIAIN in mid-May, VTB Bank had announced that the group did not see prospects for development of its business in Ukraine due to heavy losses incurred by the (Ukrainian) subsidiary, and was prepared to sell it.
However, in mid-June VTB announced that plans to sell its Ukrainian assets had been suspended.
The Ukrainian subsidiary of PJSC VTB Bank has been operating in the Ukrainian market since 1992 and is one of the largest banks.
Since 2006, over 99.9% of its shares have been owned by Russia`s Vneshtorgbank (VTB).