Russia

Russia's VTB in Europe Changes Name Amid Liquidation

NOV 9 2023·Updated AUG 27

Story

Image credit: Wikimedia Commons

The Facts

The European subsidiary of VTB, one of Russia's largest banks, has announced a change of name after its parent company revoked its consent to allow it to continue operating under the shared brand title.
Reuters
According to its CEO Frank Hellwig, the Frankfurt-based VTB Bank SE, which has been undergoing bankruptcy proceedings since last year, will now be known as OWH SE.
Reuters
Before Russia attacked Ukraine, VTB in Europe had attracted scores of German investors, with its relatively high interest rates and reputation as the sponsor of the Frankfurt Lions ice hockey team.
Financemagnates
However, following Moscow's invasion of Ukraine in February last year, several of its customers started withdrawing their deposits, forcing regulators to manage the outflow of funds.
MSN
In April 2022, regulatory bodies took control of the European entity's operations after sanctions were imposed on Russia and the bank was cordoned off from its headquarters.
US9 News
Though VTB still officially owns its European subsidiary, it declined VTB Bank SE's request to use the VTB logo and brand, stating it had been banned from exercising shareholder rights.
Shore News Network

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Anti-Russia narrative

The liquidation of VTB is the result of Russia's invasion of Ukraine. Markets and consumers alike have been made to suffer uncertainty and instability because of Moscow's expansionist actions. Removing consent for the Europe branch to continue under VTB's branding is a petty and inconsequential move at this stage in the decline of the organization.

SaltWire

Pro-Russia narrative

Unnecessary Western sanctions against Russia have ruined the global trade system and deeply affected financial institutions, including banks and forex services. Washington, not Moscow, is responsible for creating economic instability and depleting banking assets worldwide.

RadioFreeEurope/RadioLiberty