The head of VTB said what will happen to clients’ dollar accounts if sanctions are imposed

The head of VTB, Andrei Kostin, in an interview with Business FM, spoke about what will happen to clients’ dollar accounts if the bank falls under American sanctions.

Details

• Quote: “We have a lot of dollars. If people run to withdraw dollars, then we will give the money to everyone... All possibilities are being considered: payment in national currency at the current exchange rate, and transfer to other banks in rubles so that later they will be transferred into dollars, and cash (we have brought a lot now).. .Customers should not suffer - this is basic... The same with companies. With companies to which we issue loans in dollars, we make a reservation that the money can be returned in rubles at the exchange rate.”
• According to Kostin, in case of falling under sanctions, the bank has a plan agreed upon with the Central Bank and the government.

Context

• The issue of strengthening sanctions against Russia for interfering in elections is currently being actively discussed in the United States. They, in particular, involve a ban on investments in Russian government debt and the freezing of all American assets and correspondent accounts of Russian state banks. You can read in detail about the first bill here , and about the second here . The fact that sanctions will definitely be adopted in one form or another became clear fromhearings in the US Senate.
• In anticipation of the introduction of new restrictions, investors are withdrawing money from OFZs, banks are raising rates on ruble deposits, and the Central Bankmay increase the rate at its meeting on September 14. We wrote about what to do with your savings in such conditions here .
• The head of VTB has repeatedly advocated the de-dollarization of the Russian economy. In mid-July, Kostin handed over to the president a package of proposals aimed at expanding the use of the ruble in international payments and asked for their support.

Liana Faizova