Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict

Russia is considering the option to merge RNCB and Otkritie Bank into state lender and larger peer VTB Bank in the wake of sanctions imposed by the US and its allies over the invasion of Ukraine.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

All three banks are currently facing sanctions from the US, the UK, and the EU. 

VTB Bank head Andrei Kostin had proposed the idea to Russian Prime Minister Mikhail Mishustin, Interfax reported citing Russian daily Kommersant.

RNCB is a Federal Property Agency-controlled Crimean bank, while Otkritie Bank is a subsidiary of the Central Bank of Russia. 

Notably, President Vladimir Putin has already approved the plan, the publication said. 

Sources told Kommersant that Putin believes that consolidating the banks will help them save on operational expenses such as branches and staff. 

It will also help bring a “major federal player to Crimea,” the paper said. 

The government’s decision to consolidate state financial assets around a strong player is economically and politically appropriate, a government source cited by Kommersant said. 

Consolidating these assets will allow the government to optimise its expenses while having a competitive edge in the market. 

The news outlet’s sources said that the Central Bank of Russia is in favour of the proposal. 

Notably, the central bank bought a stake in Otkritie Bank after rescuing it in 2017. 

Ever since it has been trying to divest its Otkritie Bank stake via an IPO or sale. But all the efforts were put on hold after Russia invaded Ukraine in February this year.