VTB Europe Transformation: In a bid to navigate the turbulent waters of sanctions and financial difficulties, VTB’s European subsidiary is set to undergo a name change. The Frankfurt-based bank, which has faced regulatory restrictions and been in liquidation since the previous year, will now go by the name OWH SE.
This transformation comes on the heels of a significant withdrawal of funds by German savers who had previously flocked to VTB in Europe for its relatively high interest rates. The bank had also proudly associated itself with Frankfurt’s ice hockey team, the Lions, but the onset of the Ukraine conflict led to a bank run.
Despite being cordoned off from its Russian parent company due to sanctions, VTB in Europe is still officially owned by VTB. The decision to rebrand came after an attempt to continue operating under the VTB name was declined by the Russian headquarters. The new name, OWH, is a nod to a previous incarnation of the bank, Ost-West Handeslbank.
While the liquidation process is expected to continue for some time, there is a glimmer of progress, as stated by Miro Zadro, the Chief Financial Officer. Notably, the Direktbank division, which had served retail savers, has now closed its doors, marking the end of an era, as its final customer deposited money for a garden shed. The road ahead remains challenging for VTB’s European arm, but the rebranding signifies a symbolic step as it adapts to its changing landscape.
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Our Reader’s Queries
Is Russia’s VTB in Europe changing name as it liquidates?
OWH SE is the new name for Frankfurt-based VTB Bank (Europe) SE, which has been under regulatory scrutiny due to sanctions and is currently in liquidation. The bank’s CEO, Frank Hellwig, announced the name change last month. Despite its troubled past, OWH SE is committed to providing top-notch financial services to its clients.
Who owns VTB Europe?
VTB Bank (Europe) SE i.L., located in Frankfurt am Main, is primarily owned by the Russian PJSC VTB Bank in St. Petersburg. This is the current state of affairs at the bank.
Why was VTB sanctioned?
VTB was included in the Canadian sanctions list on August 6, 2014, for its involvement in the Russo-Ukrainian War and the tragic incident of Malaysia Airlines Flight 17. The United States also provided clarity on entities that fall under sectoral sanctions on August 13, 2014.
Who is the CEO of VTB Bank?
President Vladimir Putin recently held a productive meeting with Andrei Kostin, the Chairman of VTB Bank Management Board. The two leaders discussed important matters related to the bank’s operations and future plans. This meeting is a testament to the strong relationship between the Russian government and the banking sector.