The UK arm of Russia’s second biggest bank VTB is reportedly set to file for administration, becoming the latest victim of western sanctions against Moscow.
VTB Capital is due to appear in a London court today, where it will ask the judge to order a so-called special administration, Bloomberg reports.
This is a form of insolvency that ensures there’s minimal disruption to financial markets.
Moscow-based VTB is one of several financial institutions targeted by British sanctions in the wake of Russia’s invasion of Ukraine. Its separate European division has been put up for sale.
It comes just days after a London judge ordered the UK division of Russia’s largest lender Sberbank to be wound down, while Sova Capital, a London-based broker controlled by Russian banker Roman Avdeev, entered special administration last month.
07:01 AM
FTSE 100 opens lower
The FTSE 100 has lost ground at the open as the US and other western nations prepare fresh sanctions against Moscow.
The blue-chip index dipped 0.2pc to 7,598 points.
06:55 AM
US and EU to hit Russian investments with new sanctions
The US, EU and G7 are coordinating on a fresh round of sanctions against Russia, including a US ban on investment in the country and an EU ban on coal imports.
The western nations plan to increase penalties on Russian financial institutions and state-owned enterprises and will sanction unspecified Russian officials and their family members.
Jen Psaki, White House Press Secretary, said: “You can expect that they will target Russian government officials, their family members, Russian-owned financial institutions, also state-owned enterprises.
“It’s a part of the continuation of our efforts to put consequences in place, hold Russian officials accountable.”
It comes after the discovery of civilian murders and other war crimes committed by Russian troops as they retreated from Ukrainian towns.
06:51 AM
VTB becomes latest sanctions victim
Good morning.
VTB, Russia’s second biggest bank, is set to become the latest victim of western sanctions.
Its UK division is due to appear in a London court today, where it will ask the judge to order a so-called special administration, Bloomberg reports.
It comes after a court ordered the UK unit of Russia’s largest lender Sberbank to be wound down, while Sova Capital, a London-based broker controlled by Russian banker Roman Avdeev, entered special administration last month.
Special administration is a form of insolvency that shields the wider market from the collapse. Gazprom’s UK business narrowly avoided this fate after Germany took control of the gas giant’s subsidiary.
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What happened overnight
Asian share markets slipped on Wednesday as investors faced up to the possibility of aggressive monetary tightening by the US Federal Reserve to fight inflation, while focus was also on new Western sanctions against Russia over its invasion of Ukraine.
In morning trade in Asia, Japan’s Nikkei shed nearly 2pc, while South Korean shares fell 0.9pc and Australian shares lost 0.75pc.
MSCI’s broadest index of Asia-Pacific shares outside Japan skidded 1.3pc. Hong Kong’s Hang Seng index was down 1.3pc, moving away from a one-month high hit on Monday.
Shanghai lost 0.1pc as markets in mainland China reopened after two days of public holidays.
Coming up today
Corporate: Hilton Food Group, Lookers (full-year results); Hyve Group, Imperial Brands, Motorpoint, Topps Tiles (trading update)
Economics: Construction PMI (UK), producer price index (EU), FOMC minutes (US)
Source: https://finance.yahoo.com/news/uk-arm-russia-second-biggest-214745161.html