MOSCOW, March 20 VTB, Russia's No. 2
bank, said if a bank deposit levy is enforced in Cyprus it would
re-examine its business in the country, adding that any loss
from its operations there in a worst-case scenario could be
"tens of millions of euros".
A levy on bank deposits had been proposed as a condition for
a European bailout, although this was overwhelmingly rejected by
Cyprus's parliament on Tuesday. Russia has a high level of
deposits in Cyprus' banks.
VTB's Cyprus subsidiary Russian Commercial Bank is stable
and its standalone financial results account for around 3
percent of the group's consolidated net profit, VTB said. VTB
companies' deposits and current accounts at RCB and other
Cypriot banks amount to around 50 million euros, it said.
"We are of course concerned about the situation in Cyprus,"
VTB said in a statement. "If this proposal is accepted, VTB
would be forced to re-examine its business development strategy