Vneshtorgbank (VTB), Russia's state-run bank that the U.S. sanctioned in 2014 as punishment for Russia's annexation of Crimea, has sold its U.S. operation to its executives and changed its name. The New York-based business was called VTB Capital Inc.
The business, now called Xtellus Capital Partners, will provide brokerage services to VTB, allowing it to continue providing clients with products on the equity and fixed income markets in the United States.
“Given the current geopolitical situation such a change ... is the most appropriate way to continue servicing our Russian and global clients,” VTB said. Following the deal, which closed on Aug 31, there will be no direct VTB’s presence in the United States.
VTB has come up frequently in stories about the Russia investigation.
The New York Times reported last year that Felix Sater said he had lined up funding from VTB Bank for Trump Tower Moscow in November 2015, and Trump signed a letter of intent. Sater confirmed that information this past March.
In 2016, according to BuzzFeed News, the FBI started investigating suspicious wire transfers to Russian embassies around the world, and at least one came into the U.S. from VTB Bank.
Newsweek, in December 2017, published a detailed account of how Deutsche Bank partnered with VTB around the same time the former started lending Donald Trump hundreds of millions of dollars.
Russian bank VTB sells its U.S. business to its executives (Reuters)
Trump Associate Boasted That Moscow Business Deal ‘Will Get Donald Elected’ (NYT)