Russia’s VTB in Europe changes name as it liquidates

Russia’s VTB in Europe changes name as it liquidates

The European subsidiary of Russia’s VTB (VTBR.MM) will be changing its name, according to an executive who spoke to RushHourDaily. The Frankfurt-based bank, which has been under liquidation and subject to sanctions, will now be known as OWH SE. The decision comes after VTB’s parent company refused to allow the subsidiary to continue operating under the VTB brand. Frank Hellwig, the CEO of VTB’s Europe hub, confirmed the name change.

Before the conflict in Ukraine, VTB in Europe had attracted many German savers with its competitive interest rates. The bank had also positioned itself as a sponsor of Frankfurt’s ice hockey team, the Lions. However, the outbreak of war led to a significant withdrawal of funds by savers, resulting in a bank run. Regulators stepped in to manage the outflow, and in April 2022, they took control of the bank and implemented sanctions, effectively isolating it from Russia.

Despite the European subsidiary still being officially owned by VTB, Hellwig reached out to the bank’s headquarters in Russia to seek permission to continue operating under the VTB name during a licensing agreement. However, VTB declined the request. The new name, OWH, is derived from the previous iteration of the bank, Ost-West Handeslbank.

VTB in Russia has not yet responded to requests for comment. The liquidation process of the European subsidiary is expected to continue for several years. However, Miro Zadro, the CFO, stated that the bank has achieved an important milestone. The Direktbank division, which served retail savers, has officially closed, with its last customer being someone who used VTB for a deposit for a garden shed.

The article was reported by Tom Sims and John O’Donnell, with additional reporting by Alexander Marrow. Barbara Lewis edited the article. The Thomson RushHourDaily Trust Principles are followed in the reporting.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

Have a tip we should know?

Most Read

  1. News
    Pandora Papers Financial Leak Shows Us the Secrets of the World’s Rich and Powerful
    2 years ago
  2. Health
    US Supreme Court Rejects J & J TALC Cancer Case Appeal
    3 years ago
  3. Lifestyle
    9 Habits that Drain your Daily Focus and How to Avoid Them
    3 years ago
    Women’s Demand for Shapewear – the big Trends
    3 years ago
    Valentino Launches its Cosmetics Line
    3 years ago
  6. Health
    US Promises to Share 60 million Doses of AstraZeneca Vaccines
    3 years ago
  7. Health
    UK Offers Aid Amid Surging COVID-19 Cases in India
    3 years ago
  8. Sports
    Thousands of fans welcome Charlton funeral cortege at Old Trafford
    4 weeks ago
  9. News
    Brit left fighting for life after train derails in Argentinia
    4 weeks ago
    Dubai faces down airline rivals with $50 bln jet orders
    4 weeks ago
  11. Sunak
    UK’s Sunak brings back Cameron, sacks Braverman
    4 weeks ago
  12. Sports
    Man United’s Hojlund, Eriksen withdrawn from Denmark team duty
    4 weeks ago
  13. Health
    Autumn Sneezing Syndrome is on the rise… here’s what you can do
    4 weeks ago
  14. Canada
    Canada beat Italy to win Billie Jean King Cup for first time
    4 weeks ago

Follow @rushhourdaily: