The Government announces the close of a transaction to privatise a stake in Vneshtorgbank (VTB). Owing to substantial interest on the part of Russian and international investors, the number of bids has exceeded the offering by over 100%, thereby making it possible to sell this share in VTB Bank for a price consistent with the current market. The state will earn over 95 billion roubles from the sale of a 10% stake in VTB Bank. The sale of this stake is the most successful post-crisis sale of shares on the Russian market.
Investors from all over the world were interested in the transaction. This became the first large-scale investment in the Russian economy by numerous influential companies from the United States, Europe, the Middle East and Asia. The sale was preceded by numerous meetings involving Government and VTB Bank representatives with 170-plus foreign companies and foundations. The meetings highlighted the substantial interest of Russian and international investors towards VTB, a promising global bank. It is also a positive statement for the entire Russian economy which successfully dealt with the consequences of the global financial and economic crisis.
This sale was largely the result of government efforts to modify privatisation legislation during the past few years. This is the first such deal involving an international investment bank acting as consultant.
Recent legislation was designed to provide a more transparent and cost-effective process for privatisation. This, in turn, will enable the state to get the most from property sales. In this sense, the sale of the VTB stake under new regulations became a pilot project and a model for subsequent privatisation transactions.
By adhering to this model, Russian companies will take another step towards their integration with major global business. This, in turn, will help create an international financial centre in Moscow.