VTB Bank Chairman Andrey Kostin Discusses Western Sanctions, Reshaping Financial System, and Expanding Ruble Usage

Andrey Kostin, the chairman of VTB Bank, Russia’s second-largest bank, expressed his views on the effects of Western sanctions on Russia and the potential for reshaping the financial system. He stated that by imposing sanctions on Russia, the West has caused an inflation surge and demolished the global trade system. Kostin also pointed out the financial and banking crisis in the United States, which he believes is spreading to Europe.

To adapt to the changing environment, Kostin mentioned that VTB Bank is actively working on creating a new payments and settlements infrastructure involving the Russian ruble and currencies of friendly states. He highlighted the bank’s presence in major Asian countries such as China and India, as well as the Commonwealth of Independent States (CIS) countries.

Regarding the impact of sanctions on Russia, Kostin mentioned that the country has become somewhat immune to them. However, he acknowledged certain losses incurred by VTB Bank when their property was taken away. Despite this, Kostin reassured Putin that the banking sector is feeling secure and does not anticipate any major problems.

In terms of the future financial system, Kostin emphasized the need to work in new ways and reshape the system over the next several years. He mentioned that VTB Bank no longer issues loans in Western currencies and instead focuses on expanding the ruble market while working with other currencies like the yuan. Kostin stated that over 50 percent of payments and settlements with friendly countries are conducted in rubles, and he expressed the desire to further expand and simplify this process.

In summary, Andrey Kostin believes that Western sanctions have had negative consequences on the global trade system and caused inflation. He discussed VTB Bank’s efforts to create a new payments and settlements infrastructure and emphasized the importance of working with friendly countries and expanding the use of the Russian ruble and other currencies.