Fri, 15 August
23.1 C
Yerevan
USD: 384.03 RUB: 4.80 EUR: 443.29 GEL: 142.29 GBP: 510.11

VTB: 2015 to be hardest year for russian economy

YEREVAN, January 21. /ARKA/. Andrey Kostin, chairman of Russia’s VTB Group, says 2015 will be the hardest year for Russian economy.

He was quoted by Vestifinance.ru as saying that the country’s GDP may shrink by approximately 3% and inflation may exceed 10%.

VTB, like other Russian biggest companies and banks, is targeted by the U.S. and EU sanctions imposed over conflict in Ukraine.

The bank reported a 90 percent drop in third-quarter profit and cut more than a third of its employees in Europe as the sanctions restricted its ability to do business.

“We very much hope they will be loosened or softened and they will allow banks like us to come back to the capital markets and the bond markets,” Kostin said in an interview with Bloomberg TV in Davos, Switzerland.

He said there’s no reason for sanctions to be strengthened or maintained.

The Russian government has supported VTB by allocating 100 billion rubles to it for financing an infrastructural project of the Russian Railways, and in the first quarter of this year the bank may receive another 150 billion, which will be enough for maintaining its capital.

The problem is that this money comes from the government and the central bank, Kostin said, and the bank has no option but to rely on the only source – the government.

He said that the ban’s clients, Russian companies, feel now far better than in the 2009 crisis. «We have experience for resisting the crisis… We will manage to survive. I think the Russian economy will start rallying in 2016.»

“We don’t feel isolated,” said Kostin, who hosted a party at Davos for clients last night. “We have our partners and our friends. We have to adjust our business to the new conditions.” –0–

spot_img

POPULAR

Armenia registered an inflation rate of 3.4% in July.

According to the National Statistical Committee (NSC) of Armenia, 12-month inflation in the consumer market amounted to 3.4% in July of this year.

Net inflow of money transfers to Armenia from abroad decreased by 1.3% in half-year

The net inflow of cross-border transfers in favor of individuals in Armenia, received from abroad through the banking system of the Republic of Armenia, in January-June 2025 amounted to $587.6 million against $595.4 million in January-June 2024, according to the report of the Central Bank of the Republic.

Ranking of most profitable banks in Armenia based on results of first quarter of 2025

ARKA news agency publishes the ranking of the most profitable commercial banks in Armenia based on the results of the first quarter of 2025.

Armenian Central Bank unveils amendments to law On Combating Money Laundering and Terrorist Financing

On August 8, 2025, the law "On Amendments and Additions to the Law "On Combating Money Laundering and Terrorist Financing" will come into force in Armenia.

Armenia’s total public debt exceeds $13.8 billion

As of June 30, 2025, Armenia's total public debt amounted to $13,852,137 million, which is an increase of $116,520 million compared to May 31, 2025.

LATEST NEWS

spot_imgspot_imgspot_img