OREANDA-NEWS. March 22, 2013. We are of course concerned about the situation in Cyprus. The possible solution that has been proposed could potentially impact our clients, and our priority is to do everything possible to ensure our clients’ interests are protected.

That said, it should be noted that the performance of Russian Commercial Bank (Cyprus) (RCB) remains stable. RCB’s standalone financial results account for c.3% of the Group’s IFRS consolidated net profit, and so we believe that the potential impact on VTB has been significantly overstated. Even in the worst case scenario, losses to the bank would be several tens of millions of euros.

Nevertheless, VTB Group believes that the proposed solution on the deposit levy is unprofessional, dangerous and could threaten the financial stability of the European and the global economy. If this proposal is accepted, VTB would be forced to re-examine its business development strategy in Cyprus.