The UK arm of Russia’s second-biggest bank goes bust as more Russian firms are sanctioned with staff and suppliers hit
Within a few short weeks some of the largest Russian companies and banks have all but collapsed in the UK as sanctions cut the ground from beneath them writes Harry Mottram.
The British arm of the Russian bank VTB is reported to be appointing administrators after it was no longer able to pay its debts, its staff, its suppliers or its landlords due to the sanctions imposed over Putin’s War in the Ukraine.
Dozens of Russian companies have had their ability to trade frozen by the Government with the stock market freezing trade on 27 companies linked to Moscow alone. It’s led to a loss of value in most of the companies sanctioned with some becoming worthless since they cannot operate in the UK. CNBC reported that Sberbank was down 99.72% year-to-date to trade for around a single penny before the suspension, while Gazprom was down 93.71%, Lukoil 99.2%, Polyus 95.58% and EN+ 20.51%.
The Daily Mail reported that the VTB Bank would go into administration in a hearing at the High Court in London yesterday, (Sunday 10 April) when Judge Timothy Fancourt approved its application to appoint administrators. They reported: “He said Russia’s second largest bank was unable to function and pay its debts – such as rent owed – following Western sanctions prompted by the invasion of Ukraine.”
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