Bloomberg News

VTB Rejects Accusations of Mismanagement by Anti-Graft Group

September 11, 2012

Russian state-run lender VTB Group denied accusations of mismanagement by anti-corruption activist Alexey Navalny in a report released by a U.K. research group.

“This report is full of lying, tendentious and unfounded accusations prepared by people who are not professional bankers,” VTB’s press service said in a statement today. “It’s clear that the report was ordered and you need to look for corruption in the Foundation for Fighting Corruption and the Henry Jackson Society.”

The Henry Jackson Society and Navalny’s Foundation for Fighting Corruption suggested that top managers at VTB may have profited financially from a series of deals and accused the bank of failing to carry out due diligence, including in the takeover of Bank of Moscow. Russian regulators agreed to provide a record 395 billion-ruble ($12.5 billion) bailout for Bank of Moscow in July 2011 after VTB bought the city government’s 46.5 percent stake in the lender and uncovered bad debts.

“It is crucial that international banking regulators take a closer look at VTB’s activities and judge for themselves whether the bank is fit to continue doing business in their respective markets,” the report said.

To contact the reporter on this story: Henry Meyer in Moscow at hmeyer4@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net


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