The Angolan branch of the Russian bank VTB, which was excluded from the international banking system after Russia's invasion of Ukraine, must fulfill a number of conditions before it can return.
This information comes from Africa Intelligence
VTB, a Russian bank under EU and US sanctions and managed by former Foreign Minister Andrey Kostin, with 61% of its shares owned by the Russian state, decided to dissolve its Angolan subsidiary VTB Africa from the outset, in which it holds 50.1%. Antonio Carlos Sumbula, the second largest shareholder with a 49.8% stake, intends to take advantage of the opportunity to reconnect with the Swift banking system. Sumbula, former chairman of the Angolan state diamond mining company Endiama and former vice minister of oil, is already in negotiations with banking authorities in the US and Europe.
Excluded from international servicing, the bank headquartered in Luanda has no access to dollars and euros, and its branches cannot conduct international transactions for two years. The situation has stifled business. According to the latest report published in March 2023, the bank, present in Angola since 2006, has 3,700 clients, including 440 enterprises. Most of its private clients operate in the mining and diamond sectors.
To return to the Swift system, VTB Africa must find new shareholders to replace the Russian state. Sumbula is tackling the task together with the company's chairman, Igor Skvortsov, father of Vladislav Skvortsov (owner and former chairman of the restaurant guide Gault & Millau). This is a difficult task, as investors fear association with the VTB name.
In addition to the need to find new shareholders, the central bank of Angola, Banco Nacional de Angola, since September last year, has ordered VTB Africa to double its capital several times to strengthen its financial position and trust. The bank's capital currently stands at $8.9 million.
