Russian Vneshtorgbank (VTB) intends to spread its presence to all countries of the CIS by mid-2008. The bank is prepared to invest some US$1.5 billion in the capitalization of the existing and acquisition of new banks on the territory of the Commonwealth, Regnum quoted the President and CEO of the Bank Andrey Kostin.

Kostin reportedly said that the VTB is considering both opening branches and acquisitions. At this time, VTB is completing the negotiations on an acquisition in Azerbaijan. Next it plans to acquire a bank in Uzbekistan. Also, earlier this week the VTB reportedly received the permission to merge two of its banks – Vneshtorgbank and VTB Bank in Ukraine.

Moreover, the bank has completed the deal on renaming the Belarusian Slavneftebank into VTB-Belarus Bank. Within the next 2-3 years, it plans to open 50-70 additional offices on the territory of this country, and expand its services to the population.

In earlier reports, Kostin expressed his confidence about the fact that presence in all countries of the CIS would provide the bank serious advantages in terms of service and support of economic relations between the members of the Commonwealth. VTB is currently has presences in Belarus, Armenia, Georgia, and Ukraine.

VTB Group is the second largest banking institution in Russia. The Group’s assets comprise US$52 billion. The bank currently operates in 15 countries of the world. Its main shareholder with 77.5% stake is the Government of the Russian Federation. The size of the VTB’s own funds totaled 137 billion rubles as of 1 April 2007. Its net assets – 865 billion soums.

The network of the VTB subsidiaries in the countries of Western Europe includes crediting institutions in London (UK), Paris (France), Zurich (Switzerland), Frankfurt-on-Main (Germany), Limassol (Cyprus), Vienna (Hungary), Luxemburg, Luanda (Angola), Kiev (Ukraine), as well as offices in Milan (Italy), Beijing (China) and Delhi (India).