VTB will not consolidate USC in financials following transfer to trust management - executive board chairman

MOSCOW. Aug 31 (Interfax) - VTB will not consolidate United Shipbuilding Company (USC) in the group's financial statements following USC's transfer to VTB trust management, and the transfer will not affect the bank's results, VTB Deputy Executive Board Chairman and CFO Dmitry Pyanov told reporters.

"The USC deal involves transferring trust management of a certain asset from a shareholder for a timeframe, where there is no transfer of shareholder control. The shareholder remains the same. Therefore, we are proceeding from the fact that there will be no consolidation of USC in the VTB group. This is utilizing the VTB group's management expertise in the area of non-core assets, in the area of financial recovery for existing USC shareholders. We do not see any immediate or recurrent effect from the action," Pyanov explained.

USC was created in 2007 as per presidential decree, and it is 100% federally owned. VTB will receive 100% of the company's shares in trust management for five years. Russian President Vladimir Putin in August supported the government's corresponding decision.

Andrei Puchkov resigned last week as VTB first deputy chairman and was appointed CEO of USC. Andrei Kostin, VTB President and Board Chairman, was appointed USC chairman of the board of directors.