29 Feb 2024 11:38

VTB's German subsidiary demands return of over 400 mln euros in dividends

MOSCOW. Feb 29 (Interfax) - German bank OWH SE, formerly VTB Bank Europe, is demanding that VTB return more than 433.8 million euros in dividends by February 29, 2024, the Russian state bank said in a press release.

In April 2022, after the imposition of sanctions against VTB, German regulators sidelined the Russian bank from the management of its subsidiary, giving voting rights to a trust manager who decided to liquidate VTB Bank Europe as of April 1, 2023.

VTB reported on Thursday that it received a notification from OWH SE about actions to deprive the Russian bank of ownership rights to its European subsidiary.

"In 2022, we were illegally excluded from managing the bank, deprived of the right to control its financial assets, and now OWH SE denies VTB's right of ownership to the German bank, demanding the return of dividends since 2013 in the amount of more than 433.8 million euros by February 29, 2024," VTB said.

"We believe that the German side, in its attempt to deprive VTB of legal shareholder rights, is intentionally concealing information about VTB's compliance with the requirements of legislation in the course of the acquisition of shares in the European entity and corporate reorganizations conducted by the bank in the period from 2001 to 2020, including the reorganization of VTB Bank (Deutschland) AG in 2017," the Russian bank said.

VTB restructured its European sub-holding, transferring subsidiaries in Germany, Austria and France to the single license of VTB Bank Europe SE.

"We know the pedantry of Germans and do not believe that they have such a short memory. For many years VTB's right of ownership to VTB Bank Europe did not raise any questions among European regulators," VTB said.

"The reasons for the German side's actions are political and in the event of further attacks we will be forced to take retaliatory measures against those whom we once considered partners," VTB said.