VTB-EBRD talks were suspended this month, and no encouragement to resume them has come from the federal Cabinet for now, said Mr. Kostin.
The appearance of new holders is no cure-all. Sufficient capital is what matters most. "The VTB is efficient enough as it is," he remarked. More than 99 per cent VTB stock is government-held for today.
Even if a resolution is made to privatize the bank through public share placement, that will not be done overnight. "The matter has not gotten on a practical footing for now, and will not, in the near future," stressed the VTB president.
The VTB is engaged in reverse transactions-to buy Central Bank stock in Russia's overseas banks. These deals may come to a successful end within the year, he added.
The National Banking Council determined, toward last year's end, to sell Central Bank-held stock of such banks to the VTB. The Vneshtorgbank has for now met in talks with the host countries' supervisory agencies. Germany's and Singapore agencies did not demand the deals coordinated with them, so the acquisitions will be quite quick, said Mr. Kostin.
As for the UK and France, an understanding has been made with those countries to submit all necessary papers before April's end, so as to obtain an authorization within next summer, and finish the deals before this year ends.
Mr. Kostin views the CIS market as top priority in VTB activities outside Russia. The VTB has every chance to dominate it-that is what makes the post-Soviet market so attractive. Last but not least, the VTB sees every support from other Commonwealth countries' top.
Last year and at this year's start, the VTB purchased control blocks of the Armenian Savings Bank and the United Georgian Bank. It also registered a Ukrainian-based affiliate, January last, and now intends to purchase another bank in Ukraine.
The Vneshtorgbank also has prospects to establish an affiliated bank in Angola, where a Russian diamond-mining company is doing well. "We'll be following our clients," remarked the bank president.
As for starting East European branches, the VTB is not nursing any such plans. "I don't quite see what we can do in Eastern Europe, and we have no intentions for the region," he said.
