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
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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.
The National Bank of Georgia (NBG) has denied the information on an alleged termination of financial transfers from European countries to Georgia, calling it a “lie and an attempt to mislead the citizens” on Wednesday.
Georgian Liberty Bank will take over some of the loans and deposits of sanctioned JSC VTB Bank Georgia, a part of the Russian VTB Bank Group, as a result of the agreement reached between the two banks, the National Bank of Georgia (NBG) announced on Thursday.
JSC VTB Bank Georgia, which is a part of the Russian VTB Bank Group, is solvent and the interests of its depositors are fully protected amid the sanctions imposed on the Russian financial system by the United States, European Union and various other countries worldwide due to Kremlin’s military attack on Ukraine yesterday, the National Bank of Georgia (NBG) said earlier today.
The National Bank of Georgia has notified the public about an increase in the number of cases of phishing, urging customers to use caution while sharing their personal and financial data online.
Customs authorities in the Black Sea port of Batumi have rejected services to a freight ship sailing under the Turkish flag and carrying oil products from a company hit by the international community’s sanctions on Russia for its invasion of Ukraine, the Revenue Service of Georgia announced on Monday.
Commercial banks in Georgia loaned ₾43.12 billion ($14.67bln/€13.86bln) and received deposits of ₾37.15 billion ($12.64bln/€11.94bln) in April 2022, the latest data from the National Bank of Georgia shows.
Commercial banks in Georgia loaned ₾43.65 billion ($14.85bln) and received deposits of ₾38.27 billion ($13.02bln) in June 2022, the latest data from the National Bank of Georgia shows.