The London arm of Russia’s VTB Bank is on the brink of insolvency proceedings after sanctions have curbed its ongoing operations.
As reported by Mark Kleinman for Sky News, British banking regulators have called in advisers to help address Russia’s second-largest lender’s presence in the capital.
Sources told Sky that the bank could fall into special administration or liquidation process in the coming days, with insolvency practitioners reportedly geared up to help with the process.
It is also understood that the bank has been letting go employees in the City office.
Earlier this week, one of the world’s biggest banks HSBC started winding down relations with a range of Russian banks, including VTB.
Bloomberg News reported on Wednesday that VTB’s wider European operations were also being put up for sale.