The supervisory board of VTB Bank (Europe) SE has approved social plan and reconciliation of interests
The supervisory board of VTB Bank (Europe) SE (VTBE) has approved the social plan and reconciliation of interests negotiated between the bank’s management and workers council. The Frankfurt-based subsidiary of Russia’s second largest bank is no longer allowed to grant loans or accept deposits due to a ban on new business imposed by the German financial regulator. It is in the process of managing and winding down its existing business in an orderly manner.
“VTBE was a successful and profitable company with strong potential until 24 February. But in this new situation, the reduction of staff is an unavoidable decision, which we regret very much, because the employees here have all done a very good job,” says Frank Hellwig, the bank’s CEO appointed as special representative. “Only external circumstances have led to the fact that it is no longer possible for them to continue working here.”
In a first wave, the employment contracts of almost a third of VTBE’s staff will be terminated by the end of the year. At the moment, the bank still has 158 employees in Frankfurt.
VTBE still holds a banking license granted in Germany. It was already shielded from any influence of its parent company seated in the Russian Federation or any other Russian influence by BaFin at the beginning of the year. VTBE is not itself subject to EU sanctions and has also received licenses from the competent sanctions authorities in the United Kingdom and the United States of America which allow VTBE to carry out transactions in accordance with such licenses.