VTB will move European headquarters from London because of Brexit

VTB will move European headquarters from London because of Brexit


The logo of VTB

Photo: Ekaterina Kuzmina/RBC

VTB will transfer the European head office from London of UK exit from the EU. This is the first major Bank publicly announced its intention to change the headquarters for Brexit, says FT

VTB intends to move the headquarters from London because of the decision of the UK leaving the European Union. About this newspaper Financial Time said Deputy Chairman of the Bank Herbert Moos.

He explained that the Bank’s management is considering several alternative options to host the European headquarters is in Frankfurt, Paris or Vienna. The decision on this matter will be made before the end of the year, said a top Manager.

“We had big plans for the London office, but after a Brexit we are going to roll and build in another place,” — said the MEP.

In the London office of VTB employs several hundred people. Headquarters in London, in particular, performs functions such as the fight against money laundering and compliance.

MoE did not rule out that the British unit of the Bank may be under pressure from the European regulators. “I doubt that the European Central Bank will agree that we fulfill such important functions outside of the EU,” he said.

Moos added that VTB management takes into account several factors to select a new seat for the European headquarters. In particular, this regulation, the conduct of fiscal policy and the reserve. The Deputy Chairman of VTB said that London would remain an important place of presence for VTB, but not as a city for the European headquarters.

The FT writes that in addition to the office in the UK VTB has several representatives in Europe, including in Germany, France, Austria and Ireland. The MEP also said that sanctions the US and EU in 2014 prompted the state Bank to increase its presence in Asia, including India, China and Vietnam.

In June, the British voted in a referendum for withdrawal from the EU. The Prime Minister David Cameron has resigned. New British Prime Minister Theresa may to early October promised that the procedure of exit from the EU will run until March 2017. She stressed that London while keen to maintain good relations with the European countries.

After the referendum, many large companies decided to move their business out of the country, fearing the consequences of Brexit. Sources Bloomberg in mid-August said that major investment banks will start the withdrawal of the state from the UK in a few weeks after Theresa may will formally launch Brexit. In the number of banks with offices in London include Goldman Sachs, Bank of America Merrill Lynch, Deutsche Bank, Morgan Stanley, JP Morgan and others.

Vice-President at Sberbank CIB, head of global markets Andrey Shemetov said earlier RBC that the financial institution does not intend to leave London for Brexit. “Plans for changes in the operation of the office of Sberbank CIB in London no. The volume of operations in our London office has not decreased. On the contrary, we see positive dynamics in comparison with the previous year,” he said.

In the “VTB Capital” and Alfa-Bank said that Brexit does not affect the work of their offices in London, but did not comment on the future of units in the UK.