RosBusinessConsulting Database
March 19, 2004 Friday 11:14 am, EST

Vneshtorgbank managers to consider expansion in Belarus and
Azerbaijan

Vneshtorgbank might be interested in affiliates in Belarus and
Azerbaijan, senior deputy president of the bank Alexey Akinshin told
RBC. According to him, the bank has elaborated on its regional
expansion program, which suggests expansion into the CIS and European
markets. Vneshtorgbank plans to become the sole shareholder in the
Armenian Armsberbank. Vneshtorgbank is also working to create a
Ukrainian subsidiary.

Earlier Vneshtorgbank top-managers reported that the talks were held
on the possible creation of Kazakhstani and Georgian subsidiaries. A
lot of western rivals are present on the Kazakhstani market now.

As for expansion in Europe, Akinshin said that Vneshtorgbank in
cooperation with the Central Bank of Russia is considering a buyout
of the Central Bank’s stake in OST-West Handelsbank (OWHB) and Donau
bank. Currently the Russian Central Bank owns 51.62 percent in OWHB
and Vneshtorgbank holds a 31.92 stake.

It is too soon to consider the buyout of Vneshtorgbank’s stakes in
Eurobank (Paris) and the Moscow Narodny Bank (London), Akinshin
emphasized.

Vneshtorgbank owns 53 percent in Luxembourg-based East-West United
Bank, 100 percent in Zurich-based Russische Kommerzial Bank, 32
percent in Frankfurt-based Ost-West Handelsbank, 100 percent in
Cyprus-based Russian Commercial Bank and 85 percent in Viennese
Donau-Bank.