Yesterday the European Union introduced sanctions against Russia. They were applied to Russian Saving Bank, VTB, Gasprombank, Vnesheconombank and Rosselkhozbank.
In May 2013 the Norwegian Sovereign Bank bought 4.28% shares of VTB during the additional issue, while Qatar Sovereign Fund and State Oil Fund of Azerbaijan (SOFAZ) – 2.95% shares each.
Will the sanctions affect VTB capitalization and $400 million invested by SOFAZ decrease in value within a short period?
A source from SOFAZ told Turan that “purchase of shares of VTB Bank was a part of SOFAZ investment policy with the purpose to increase long-term profitability and diversify investment portfolio of the Fund.”
“Considering stability and creditability of VTB Bank, we believe that the sanctions introduced against some Russian companies and banks, including sanctions against VTB, as well as limitations caused by the sanctions will not negatively affect the commitments undertaken to the investors, depositors and creditors. The changes could lead to short-term fluctuations, but the SOFAZ investment strategy has a long-term basis and for this reason we do not expect significant influence of sanctions on our investments,” said the same source.
A week ago representation of the Norwegian Pension Fund (Sovereign Fund) said that they have been studying situation in Russia closely. “If the sanctions are toughened, we will consider possibility of withdrawal of funds from Russia,” said the Norwegian representative.
