Russia's VTB capital turns to Asia amid US sanctions

Russian investment bank VTB Capital is switching focus to Asian markets, its chairman said, after the West imposed sanctions on its parent, VTB Bank.

VTB Bank, Russia's second-largest bank by assets, was sanctioned by the United States and European Union in the summer over Moscow's role in the Ukraine crisis, limiting its access to international capital along with other Russian state banks.

Yuri Soloviev said VTB Capital was looking at reducing its investment-banking presence in the US because of lower demand for its services and was refocusing its team in Britain, without giving details.

"The West is pushing us towards Asia," Soloviev said on the sidelines of VTB Capital's annual investment forum last week. "Of course, the general market environment in Russia is negative. Volumes in equity and debt capital markets (DCM) are around 60 per cent lower this year, which means lower commissions. The markets are essentially frozen."

He said VTB Capital was planning to move staff around and restructure its teams to place less emphasis on Western markets. He did not clarify how many people the bank could move or whether the bank was planning any major staff cuts.

He said he saw scope for a reduction in personnel at VTB Group, which employs more than 100,000 people, but saw room for expansion in Asia, the Middle East and Africa.