Bloomberg News

VTB Group Won’t Buy Borodin Stake in Bank of Moscow, Kostin Says

October 01, 2011

Oct. 1 (Bloomberg) -- VTB Group will not buy any Bank of Moscow shares held by former chief executive officer Andrey Borodin as the state-controlled lender acquires minority stakes in the lender, VTB President Andrei Kostin said.

VTB is working out a plan for acquiring shares from “simple shareholders, citizens who have small stakes they bought with their wages,” Kostin said. Russia’s second-biggest lender is spending “a minimal amount” to boost its holding, he said, without giving details.

“We are not planning to buy shares belonging to Mr. Borodin or his cronies,” Kostin told state television. “In our opinion, they have a small stake, but we have no desire and will take no actions to buy it.”

VTB increased its stake in Bank of Moscow to 80.57 percent, it said in a statement on Sept. 29. Borodin, who headed Bank of Moscow, Russia’s fifth-biggest lender until VTB bought the city’s stake this year, is the subject of an international arrest warrant by the Russian authorities in connection with a loan investigation. Borodin, 44, has denied any wrongdoing.

--Editors: Torrey Clark, Alex Nicholson

To contact the reporter on this story: Alena Chechel in Moscow at

To contact the editor responsible for this story: Balazs Penz at

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