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Russia's VTB criticises Bank of England's demands Russia's VTB criticises Bank of England's demands
(about 3 hours later)
Russia's second largest bank has accused the Bank of England of making politically motivated demands against its operations in London, amid escalating tensions over Ukraine.Russia's second largest bank has accused the Bank of England of making politically motivated demands against its operations in London, amid escalating tensions over Ukraine.
Andrey Kostin, the president of state-owned VTB bank told Izvestiya newspaper: "In the last weeks we have experienced very strong pressure from the Bank of England with regard to our bank VTB Capital in London." Andrey Kostin, the president of state-owned VTB bank told Izvestiya newspaper: "In the last weeks we have experienced very strong pressure from the Bank of England with regard to our bank VTB Capital in London.
"We are now being presented with demands, which are incompatible with routine, practical supervision," he said. "It seems to me they are largely politically motivated." Kostin also accused the US of an "unfriendly step" against Russian financial institutions by compelling them to participate in a law to crack down on foreign tax dodging. "We are now being presented with demands, which are incompatible with routine, practical supervision. It seems to me they are largely politically motivated."
Kostin also accused the US of an "unfriendly step" against Russian financial institutions by compelling them to participate in a law to crack down on foreign tax dodging.
The Bank of England has so far declined to comment.The Bank of England has so far declined to comment.
The complaint comes as the US weighs fresh sanctions on Russia, after President Vladimir Putin threatened to stop gas supplies to Ukraine over unpaid bills. The US and EU have already launched sanctions against Bank Rossiya, a smaller bank with close ties to the Kremlin. The complaint comes as the US mulls over fresh sanctions against Russia, after President Vladimir Putin threatened to stop gas supplies to Ukraine over unpaid bills. The US and EU have already launched sanctions against Bank Rossiya, a smaller bank with close ties to the Kremlin.
Kostin, a member of Putin's United Russia party, is one of Russia's most powerful bankers, and led the push for VTB's overseas expansion, setting up investment banking offices in London, Hong Kong, Dubai and Singapore. VTB Capital, is listed on the London Stock Exchange and flies the Russian flag from its palatial office in the heart of the City - nearly opposite the Bank of England's headquarters. Kostin, a member of Putin's United Russia party, is one of Russia's most powerful bankers, and led the push for VTB's overseas expansion, setting up investment banking offices in London, Hong Kong, Dubai and Singapore. VTB Capital, is listed on the London Stock Exchange and flies the Russian flag from its palatial office in the heart of the City - almost opposite the Bank of England's headquarters.
The Ukraine crisis has put the spotlight on the City's links with Russia, and embarrassed the UK government, after a civil servant was photographed with a document saying the financial centre should not be closed to Russians. The crisis in Ukraine has put the spotlight on the City's links with Russia, and embarrassed the UK government, after a civil servant was photographed with a document saying the financial centre should not be closed to Russians.
Kostin said he had been visited by a number of western bankers, from Europe and the United States, who had "specifically flown in to confirm their intention" of working with VTB. Businesses wanted to co-operate with Russia he said, "simply our colleagues will not advertise it loudly because they feel the pressure." Kostin said he had been visited by a number of western bankers, from Europe and the US, who had "specifically flown in to confirm their intention" of working with VTB. Businesses wanted to co-operate with Russia he said, "simply our colleagues will not advertise it loudly because they feel the pressure".