Alexey Ulyukaev, who also sits at VTB’s supervisory board, is personally interested in a successful IPO of the bank which is expected to raise up to 120 billion rubles.
Photo: Pavel Smertin
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Central Bank Goes to Prosecutors to Help VTB’s with IPO
The Russia Central Bank has asked prosecutors to charge a minority shareholder in VTB-controlled banks with fraud. Valentin Ermakov, head of Tsentrosoyuz RF, is claiming rights on shares in Paris-based BCEN-Eurobank and London-based Moscow Narodny Bank which are part of the Russian state-owned VTB group. Russian banking experts believe that banking officials are thus trying to help VTB reduce investment risks ahead of its initial public offering.
Kommersant got hold of a letter from Central Bank First Deputy Chairman Alexey Ulyukaev to Russian Prosecutor General Yury Chaika requesting to open a criminal case against Valentin Ermakov, chief executive of Tsentrosoyuz RF. The Central Bank accuses Mr. Ermakov of “seizing federal ownership worth at least ˆ17 million,” which is Eurobank and Moscow Narody Bank.
BCEN–Eurobank was owned by the Soviet Bank and a number of state-controlled organizations including Tsentrosoyuz (9.21 percent) which also had 0.68 in Moscow Narody Bank. Tsentrosoyuz is now a nonprofit organization of 3,500 consumer societies. The stake in dispute is evaluated to be worth ˆ45 million. Moscow Narodny Bank’s joint stock was recorded to be worth £144.27 million in September 2006.
The conflict between the Bank of Russia and Tsentrosoyuz over the banks started in 2004 and involved 11 court sessions. On November 28, 2006, a Russian court of appeal recognized the stake in Eurobank which is now managed by Tsentrosoyuz to be part of federal property. But Valentin Ermakov still considers the stocks as property of Tsentrosoyuz. He says the Central Bank sent a letter to the prosecutors “to try and put a pressure” on his organization.
The Central Bank handed rights over the two banks to the state-owned VTB (formerly known as Vneshtorgbank) in 2006.
Russian banking experts note that Alexey Ulyukaev, who also sits at VTB’s supervisory board, is personally interested in a successful IPO of the bank which is expected to raise up to 120 billion rubles. In case the dispute is settled in favor of Russian authorities, VTB may have one investment risk taken out from its memorandum.
www.kommersant.com
All the Article in Russian as of Feb. 12, 2007
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