Agreements were signed on 21 December 2005 between the Bank of Russia and Vneshtorgbank, as decided by the National Banking Council and the Russian Government, to transfer shareholdings in Russian-owned banks based abroad. Once all required approvals from antimonopoly and other supervisory authorities within relevant jurisdictions are received, settlements on the deal are completed and appropriate records are made to the shareholders` register, Vneshtorgbank will become owner of the stakes presently belonging to the Bank of Russia in Moscow Narodny Bank Ltd., London (88.89%), Commercial Bank for Northern Europe - Eurobank, Paris (87.04%), Ost-West Handelsbank AG, Frankfurt-am-Main (51.62%), Donau-Bank AG, Vienna (15%) and East-West United Bank C.A., Luxembourg (15%).
By joining Moscow Narodny Bank and Eurobank, Vneshtorgbank Group will comprise seven lending institutions located in Western Europe with aggregate assets approximating US$9 billion. With the VTB Group expanded, Vneshtorgbank will be able to more efficiently serve international business of its customers and to participate in top national projects in international markets, including those related to cross-border business development and fund raising for the Russian economy.
For reference: With Vneshtorgbank`s existing stake, its shareholding is going to be 100% in Donau-bank, 83.54% in Ost-West Handelsbank, 49% in East-West United Bank, with Eurobank owning a 2% stake in the last one. Vneshtorgbank also owns Russian Commercial Bank (Cyprus) Ltd., Limassol (a 100% stake), Russian Commercial Bank AG, Zurich (a 100% stake), Armenian Savings Bank, Erevan (a 70% stake), United Georgian Bank (50% + 1 share) and Vneshtorgbank (Ukraine) (a 100% stake).