U.S. sanctions not to affect VTB Bank`s operation in Azerbaijan

Photo: U.S. sanctions not to affect VTB Bank`s operation in Azerbaijan / Economy news

Baku, Azerbaijan, July 30
By Ilaha Mammadli - Trend:

"Bank VTB Azerbaijan" JSC works in normal mode, providing a full range of services for deposit and loan contracts as well as transactions including money transfer and payments with bank cards, despite the declared U.S. sanctions against a number of Russian banks on July 29, the bank told Trend.

"We emphasize that the imposed sanctions will have no impact on our customers - the bank will continue to provide the full range of services and obligations in full volume in all currencies, with which it has worked. The representatives of Visa and Mastercard international payment systems have already confirmed that the bank plastic cards can also be used without limitation both on the territory of our country and abroad," the bank said.

In turn, the VTB Group in a statement issued on July 30 accepted the decision of the U.S. authorities restricting the bank in raising capital with regret.

"In our opinion, it is absolutely inadequate, as VTB strictly fulfills all legislative norms, including the requirements of the U.S. regulatory bodies, which they are well aware. Thus, we consider this decision as purely politically motivated, unfair, contrary to the legal basis and inflicting mutual economic damage," the report said.

VTB is a strong backbone Russian credit institution with broad international presence and strong financial position.

"Despite the U.S discriminatory decision, the VTB will fulfill all its obligations before its shareholders, customers and investors," the Group said.

U.S. decision on the restriction of the VTB`s access to the capital market will not affect the activities and the bank's creditworthiness. VTB enjoys a good reputation among global investors, it has excellent expertise in borrowing not only in Western markets. Russian bank is confident that it can attract resources in the case of necessity.

The U.S. imposed sanctions on July 29 against the Bank of Moscow, VTB and Russian Agricultural Bank, prohibiting U.S. citizens and companies to acquire new issues of their shares and provide them with new loans over 90 days. All other operations with these banks are not subjected to the sanctions.

Following the sanctions announced by U.S. President Barack Obama on July 29, the European Union has restricted access to its capital markets for "Russian financial institutions owned by the state", stating that EU citizens and companies will no longer be able to buy or sell new shares, bonds, or "similar financial instruments "with a maturity of more than 90 days, issued by Russian state-owned banks, the development banks (Vnesheconombank), their "daughters" and those acting on their behalf.

Earlier on July 29, the Central Bank of Russia announced that the banks that came under the sanctions are operating in normal mode, and the payments by using bank cards remain stable. At the same time, the regulator announced its readiness to provide the necessary support to these banks.

The Russian offices of the Visa and MasterCard international payment systems also said that new sanctions imposed by the U.S. against Russian banks have no effect on their activities in Russia.

U.S. and the EU do not recognize the annexation of Crimea to Russia and accused Moscow of intervening in Ukraine`s internal affairs.

Russia denies it and calls similar allegations unacceptable. Since March, the Western countries have repeatedly imposed sanctions against a number of Russian politicians, businessmen and companies and threatened to extend the restrictive measures.

VTB Bank (Azerbaijan) is a subsidiary of OJSC VTB Bank. VTB Bank and Ata Holding are shareholders of VTB Bank (Azerbaijan). VTB Bank (Azerbaijan) provides services to clients of corporate business, small business and private clients. Currently the bank is represented by four branches and the Office of customer service at the head office.

Edited by CN

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