Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

VTB Cancels New York Forum as U.S. Relations Sour

Don't Miss Out —
Follow us on:
A Logo Sits Outside the Headquarters of VTB Group in Moscow
Parent VTB Group’s shares, which fell 3.1 percent yesterday, were down 2.3 percent to 3.54 kopeks at 3:12 p.m. in Moscow after the Parliament in Crimea voted in favor of becoming part of Russia. Photographer: Alexander Zemlianichenko Jr./Bloomberg

March 6 (Bloomberg) -- VTB Capital, the state-controlled Russian investment bank, has canceled its annual New York investor forum in April as relations with the U.S. deteriorate over the crisis in Ukraine.

The April 8-9 event will be rescheduled “to ensure the availability of keynote speakers and to confirm those dates that will be convenient for the forum’s target audience,” the Moscow-based bank said in a statement last night.

VTB Capital, a unit of Russia’s second-largest lender, received a license to trade stocks in the U.S. in 2011 and has the biggest presence of any Russian bank on Wall Street. Its second annual U.S. investor forum last April attracted almost 400 people, including 220 investors and representatives from 28 companies, according to the VTB Capital website.

Parent VTB Group’s shares, which fell 3.1 percent yesterday, were down 2.3 percent to 3.54 kopeks at 3:12 p.m. in Moscow after the Parliament in Crimea voted in favor of becoming part of Russia. The benchmark Micex index lost 1.2 percent as Western nations including the U.S. threaten Russia with sanctions over its military intervention in Crimea.

‘Capital Flight’

“These discussions clearly increase country risk for Russian banks, implying lower attractiveness of equity investment,” Olga Naydenova, a banking analyst at BCS Financial in Moscow, wrote in an e-mailed report. “Such discussions stimulate capital flight, triggering ruble weakness and interest rate spikes, which are negative for banks’ earnings.”

VTB’s shares slid 18 percent on March 3 after Russian President Vladimir Putin’s troop buildup in Crimea led to the biggest sell-off in Russian stocks for more than five years. A day later, the stock recovered 8 percent after Putin said he sees no need to invade Ukraine, while reserving the right to deploy the military to defend ethnic Russians in the region.

“We cannot and will not allow the integrity of the sovereignty of the country of Ukraine to be violated and for those violations to go unanswered,” U.S. Secretary of State John Kerry said yesterday after meetings in Paris with his counterparts from Russia, the U.K. and Ukraine.

VTB, headed by former diplomat Andrey Kostin, earned 15 percent of its 2012 revenue outside of Russia, according to data compiled by Bloomberg. VTB Capital is the biggest organizer of Russian equity and bond deals, the data show.

The lender, which was organizing a bailout to Ukraine before Ukrainian President Viktor Yanukovych was removed, said on Feb. 26 it had stopped lending to new clients in the country.

To contact the reporter on this story: Jason Corcoran in Moscow at jcorcoran13@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.