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Russian bank VTB sells its U.S. business to its executives

Published 03/09/2018, 15:26
Updated 03/09/2018, 15:30
© Reuters. FILE PHOTO: The logo of Russian bank VTB is seen on a board at the SPIEF 2017 in St. Petersburg
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MOSCOW (Reuters) - VTB (MM:VTBR), Russia's second biggest bank, said on Monday it had sold its New York-based business, VTB Capital Inc., to its executives, citing geopolitics as one of the reasons for the deal.

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.

© Reuters. FILE PHOTO: The logo of Russian bank VTB is seen on a board at the SPIEF 2017 in St. Petersburg

"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.

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