BaFin immediately prohibited the management of VTB Bank (Europe) SE from following the instructions of the owner, PJSC VTB Bank, St. Petersburg. In combination with the order issued weeks ago prohibiting payments or other movements of assets from being carried out for the benefit of companies in the VTB Group, these measures result in VTB Bank (Europe) SE being completely cut off from its parent company.

PJSC VTB Bank, St. Petersburg, now no longer has any control over VTB Bank (Europe) SE and cannot access financial assets or economic resources.

The Bundesbank is responsible for implementing financial sanctions in Germany, and in this capacity it has declared that, based on its findings, VTB Bank (Europe) SE does not appear to be controlled by its parent company within the meaning of the EU financial sanctions.

The situation for VTB Bank (Europe) SE’s operational business therefore essentially remains unchanged. Depositors can continue to access their money freely and borrowers can continue capital repayments and interest payments on their loans. The bank’s other creditors may also receive loan repayments and other payments from the bank, provided that they are not subject to sanctions themselves. Correspondent banks, service providers and employees can continue to carry out work for VTB Bank (Europe) SE.

Together with the Bundesbank, BaFin is constantly keeping a close eye on developments at the bank and is closely supervising the bank with the special commissioner it appointed. VTB Bank (Europe) SE’s financial and liquidity position is still sound. VTB Bank (Europe) SE can therefore resume the process of scaling back its business activities. If the bank’s situation changes, BaFin will react promptly with appropriate measures.