YEREVAN, March 22 (Itar-Tass) – Russia’s foreign trade bank Vneshtorgbank (VTB) will buy a blocking stake in Armenia’s savings bank Armsberbank.

The parties are expected to sign a correspondent agreement in Yerevan on Wednesday, March 24, chairman of the Armsberbank Board Mikhail Bagdasarov told Itar-Tass on Monday.

The deal between the two banks will become the most advantageous for Armenia since the collapse of the Soviet Union, he said. “This is a mechanism that unites the Russian and Armenian banks that are supported by solid financial sources,” Bagdasarov said.

The deal is necessary for the development of bilateral economic relations with Russia, he said. Armenian businessmen will have an opportunity to enter the Russian market, while Russian businessmen – Armenian.

Russia’s largest companies that work in Armenia will take out loans from Armsberbank, a future VTB affiliate. “As a shareholder VTB intends to increase Armsberbank’s charter capital four or five-fold and expand its service sector,” he said.

Armsberbank will retain thirty percent of the shares and have the right to have a say in important deals. Bagdasarov expressed confidence that this formula will allow Armenia to attract large investments from Russia through VTB.