The London branch of Russia’s VTB Bank is on the brink of insolvency proceedings after sanctions curbed its ongoing operations.
As reported by Mark Kleinman for Sky News, UK banking regulators have enlisted the help of advisers to deal with the presence of Russia’s second largest lender in the capital.
Sources told Sky the bank could fall into a special administration or liquidation process in the coming days, with trustees reportedly prepared to assist in the process.
It is also known that the bank has fired employees at the city office.
Earlier this week, one of the world’s largest banks, HSBC, began winding down relations with a series of Russian banks, including VTB.
Bloomberg News reported on Wednesday that VTB’s broader European operations are also up for sale.