Statement by Andrei Borodin

To: Yuri Yakovlevich Chaika

General Prosecutor of the Russian Federation



In February of 2011, the VTB Bank Group unlawfully acquired a stake in the Bank of Moscow (an open joint-stock company) that earlier belonged to the Government of Moscow. The stake was acquired without holding an auction, which is required in accordance with norms of Russian privatisation legislation, and in violation of other legal stipulations. In particular, the VTB Bank Group in principle had no right to purchase this stake, because it was 75-per-cent government-owned and therefore could not take part in privatisation of government property. Due to that, in my opinion, all subsequent actions of the VTB Bank Group with respect to the Bank of Moscow and its shareholders are illegitimate and the managing bodies of the Bank of Moscow have been formed unlawfully. I believe that those facts alone need to be investigated by the General Prosecutor’s Office of the Russian Federation. However, I would like to bring to your attention the following example of the actions of the VTB Bank Group, which have resulted in significant damage to the economy of Russia. Continue reading