Prime-Tass English-language Business Newswire
October 27, 2006 Friday

Russian VTB expects to bring stake in VTB Armenia to 100% in 2-3 mos

Russia’s state-owned Vneshtorgbank, or VTB, expects to close a deal
to increase its stake in VTB Armenia Bank to 100% from its current
70% plus one share over the next two or three months, VTB’s Senior
Vice President Vasily Titov told reporters Friday.

The remaining 30% minus one share stake currently belongs to Mikhail
Bagdasarov, the owner of Mika Armenia Trading Company.

The shareholders’ equity of VTB Armenia Bank currently amounts to the
equivalent of U.S. $24 million, VTB Armenia Bank CEO Alexander
Vartanov said.

The bank ranks second in Armenia in terms of the individual account
balances, Vartanov said. The bank accounts for 10% of total
individual account balances in Armenian banks, he added.

VTB Armenia Bank has 100 branches in the country.

At the present time VTB Group consists of three Russian banks,
including VTB, Vneshtorgbank Retail Services and Industrial and
Construction Bank, or Promstroibank; seven banks in Western Europe,
namely in the U.K., France, Austria, Germany, Switzerland, Cyprus and
Luxemburg; four banks in the CIS, namely, two in Ukraine, one each in
Armenia and Georgia; as well as two joint ventures in Angola and
Namibia.