{{Short description|Russian financial institution}} {{Use dmy dates|date=November 2020}} {{Infobox company | name = Bank of Moscow | native_name = Банк Москвы | native_name_lang = ru | image = Moscow Kuznetsky Most Street 15-8.jpg | type = | traded_as = MSKB@RU | predecessor = | founder = | fate = Merged with VTB Bank |successor = VTB Bank | defunct = {{end date|df=yes|2016|05|10}} | area_served = Russia | key_people = Andrei Kostin (Chairman) | industry = Finance | genre = <!-- Only used with media and publishing companies --> | products = | services = Banking | revenue = | operating_income = | net_income = | aum = RUB 669 bln | assets = RUB 958 bln | equity = 121,6 billion rubles. (2009, IFRS ) | num_employees = 10504 (30 September 2009) | divisions = | homepage ={{url|http://www.bm.ru/en}} | footnotes = | caption = | location = | location_city = Moscow | location_country = Russia | locations = 42 branches in Moscow and Moscow region and 43 branches in major cities of Russia | foundation = {{start date|1995}} (as Moscow Municipal Bank - Bank of Moscow); 2016 (as VTB Bank) }} The '''Bank of Moscow''' ({{langx|ru|Банк Москвы}}) was a Russian bank that provided banking services to both corporate and retail customers until May 2016.<ref>{{Cite web|url=http://www.bm.ru/en/about-bank/reorganization/|title=Reorganization :: About Bank :: VTB Bank of Moscow|website=www.bm.ru|access-date=2016-05-12|archive-url=https://web.archive.org/web/20160604034510/http://www.bm.ru/en/about-bank/reorganization/|archive-date=4 June 2016|url-status=dead}}</ref> Headquartered in Moscow, the bank had 267 outlets, including branch offices and cash desks. BoM had over 114,000 corporate and 9 million retail customers. In 2011, it was the fifth largest bank in Russia.<ref>{{cite web|url=http://www.bm.ru/en/about/|title=About the Bank :: Bank of Moscow|publisher=Bank of Moscow|accessdate=8 July 2011|archiveurl=https://web.archive.org/web/20110723021945/http://www.bm.ru/en/about/|archivedate=23 July 2011|url-status=dead}}</ref> As of 1 July 2016, it had 6.3 million banking cards in its portfolio. Its central office was located in the building of the Moscow International Bank in Moscow, on the corner of Kuznetsky Most and Rozhdestvenka streets.

On 10 May 2016 its merger into VTB Bank was finalized.<ref>{{cite web |url=http://www.vtb.ru/group/press/news/releases/502668/ |title=Группа ВТБ успешно завершила интеграцию Банка Москвы |website=www.vtb.ru |url-status=dead |archive-url=https://web.archive.org/web/20160917210552/http://www.vtb.ru/group/press/news/releases/502668/ |archive-date=2016-09-17}} </ref>

In 2011, following a hostile takeover by VTB Bank, US$9&nbsp;billion VTB claimed they had found several fraudulent loans, and the bank received an unprecedented US$14&nbsp;billion bailout.<ref name="BBC1">{{cite web|url=https://www.bbc.co.uk/news/business-13999509|title=Russia rescues Bank of Moscow in record bail-out|date=1 July 2011|publisher=BBC News|accessdate=3 July 2011| archiveurl= https://web.archive.org/web/20110703112213/http://www.bbc.co.uk/news/business-13999509| archivedate= 3 July 2011 | url-status= live}}</ref> Though Russia issued an international arrest warrant for Andrey Borodin for his suspected role in the accused fraud,<ref name="BBC1"/> he was granted political asylum in the UK in February 2013.<ref name=BBC21627481>{{cite web|url=https://www.bbc.co.uk/news/world-europe-21627481|title=Russian ex-banker Andrei Borodin wins asylum in UK|work=BBC News|date=1 March 2013|accessdate=1 March 2013}}</ref>

==History== The bank was established in 1995 under the name Moscow Municipal Bank – Bank of Moscow.

In 1999 Bank of Moscow obtained a 45% stake in the Russian Land Bank (RZB) ({{langx|ru|«Русский Земельный Банк» (РЗБ)}}).<ref>{{cite news |last=Alexandrov|first=Vladimir |url=http://www.informacia.ru/facts/luzkov-facts.htm |title=Лужков Юрий Михайлович - мэр Москвы |trans-title=Luzhkov Yuri Mikhailovich - Mayor of Moscow |language=ru |work="Секретные материалы России" (informacia.ru) |date=9 October 1999 |access-date=21 August 2021 |archive-date=1 December 2003 |archive-url=https://web.archive.org/web/20031201010620/http://www.informacia.ru/facts/luzkov-facts.htm}}</ref><ref>{{cite news |first1=Anvar|last1=Amirov|first2=Vladimir|last2=Pribylovsky |url=https://www.rusmysl.ru/1999III/4283/4283001.html |title=Камень, брошенный из стеклянного дома: Лужков объявил войну Ельцину |trans-title=A stone thrown from a glass house: Luzhkov declared war on Yeltsin |language=ru |work="Русская мысль" (rusmysl.ru) |date=9 October 1999 |access-date=21 August 2021 |archive-date=18 May 2000 |archive-url=https://web.archive.org/web/20000518173227/https://www.rusmysl.ru/1999III/4283/4283001.html}}</ref>

By February 2011, the Government of Moscow's 46.48% ownership had been completely sold to VTB Bank. VTB also acquired 25% plus one share of Capital Insurance Group, which had a 17.32% stake in the Bank of Moscow. The total purchase price was 103 billion rubles. Besides VTB, the Russian Alfa Bank,<ref>{{cite news|title=Alfa Bank eyes Bank of Moscow stake - report|url=https://www.reuters.com/article/alfabank-bankofmoscow-idUSLDE70N07L20110124|publisher=Reuters|date=24 January 2011|accessdate=2 May 2012}}</ref> and Bank Austria, a subsidiary of UniCredit,<ref>{{cite news|title=Bank Austria Bids for Bank of Moscow|url=http://www.friedlnews.com/article/bank-austria-bids-for-bank-of-moscow|publisher= FriedlNews|date=14 January 2011|accessdate=2 May 2012}}</ref> declared great interest in buying the Moscow government's stake. The sale was made to VTB (according to the representative of the Moscow mayor's office) because of a higher price offered and the availability of complete documentation, including a permit to purchase from the Russian Federal Antimonopoly Service.<ref name="vend">ВТБ наконец вошел в капитал Банка Москвы - Ведомости</ref> In March 2011, VTB bought shares owned by Credit Suisse (2.77%) and shares owned by a Swiss fund (1.7%),{{cn|date=May 2023}} bringing its stake to a controlling interest of approximately 51%.{{fact|date=September 2025}}

In early April 2011, Andrey Borodin and Lev Alaluyev sold their 20.32% stake in Bank of Moscow to Vitaly Yusufov, son of the former Russian Energy Minister Igor Yusufov.{{cn|date=May 2023}} Vitaly Yusofov had borrowed US$1.1&nbsp;billion from the Bank of Moscow for this acquisition.<ref>{{cite news|title=Bank of Moscow Stakes Sold to Vitaly Yusufov, Vedomosti Says|author=Marina Sysoyeva|url=https://www.bloomberg.com/news/2011-04-11/bank-of-moscow-stakes-sold-to-vitaly-yusufov-vedomosti-says.html|publisher=Bloomberg|date=11 April 2011|accessdate=8 May 2012}}</ref>

Borodin himself, who by this time had been indicted ''in absentia'' for abuse of office, said that the transaction was carried out with a "torn off by hand",<ref name="ved_04_2011">{{cite web|author= Naila Asker-zade.|url=http://www.vedomosti.ru/newspaper/article/258257/borodin_sdal_bank|title=Borodin passed the Bank|publisher=ru://Ведомости|accessdate=11 April 2011}}</ref> and that the change of leadership at the bank led to the raids.<ref name="ria_04_11">{{cite web|url=http://www.rian.ru/inquest/20110412/363799279.html|title= Saga of the Bank of Moscow: the end of the chapter |date= 12 April 2011 |publisher=// rian.ru|accessdate=13 April 2011}}</ref> By the end of September 2011, VTB had acquired more than 80% of the shares of the Bank of Moscow,<ref>{{cite news|title=Russia's VTB buys 81 pct in BoM, ends long battle|url=https://www.reuters.com/article/vtb-bankof-moscow-idUSL5E7KT2KI20110929|publisher=Reuters|date=29 September 2011|accessdate=17 May 2012}}</ref> buying from Vital Yusufov (20%), and Suleiman Kerimov (3.88%). Shares were also acquired as part of a package of the Metropolitan Insurance Group.<ref name="газ_09_2011">{{cite web| author= Gleb Klimentyev.| url=http://gazeta.ru/financial/2011/09/29/3785302.shtml| title= State Bank of Moscow | publisher=// gazeta.ru| accessdate=30 September 2011}}</ref>

The media suggested when Borodin left, more than half of the bank's loan portfolio consisted of loans issued to companies affiliated with Borodin. Borodin himself refused to comment on this information.<ref>{{cite web|author= Naila Asker-zade.|url=http://www.vedomosti.ru/newspaper/article/258858/v_biznese_ne_stoit_doveryat_lyudyam_andrej_borodin_byvshij|title="In business, you should not trust people," - Andrei Borodin, the former president of Bank of Moscow |publisher=// Ведомости, 20 April 2011, № 70 (2836)|accessdate=20 April 2011}} A Russian language page</ref> According to an investigation by the newspaper "Vedomosti", the total amount of loans granted by the bank to companies associated with Borodin was approximately 217 billion rubles, which exceeded the bank's equity. According to the newspaper, a significant part of these loans were used to repay loans which were dubious or not secured by liquid assets,<ref>{{cite web|author= Svetlana Petrova, Nail Asker-zade.|url=http://www.vedomosti.ru/newspaper/article/262114/borodinskaya_panorama|title= Borodino panorama |publisher=// Ведомости, 15 June 2011, № 107 (2873)|accessdate=15 June 2011}} This page is in Russian</ref> and later this information was confirmed by an inspection of the Accounts Chamber of the Russian Federation.<ref>{{cite web|author= Gleb Klimentyev.|url=http://gazeta.ru/financial/2011/07/06/3687821.shtml|title= Money for Faith |publisher=// gazeta.ru|accessdate=7 July 2011}}</ref>

Later, it was announced by VTB that the bank had 380 billion rubles in bad debt.<ref name="газ_09_2011"/> As a result, in late September 2011 the Deposit Insurance Agency provided a loan for 10 years, amounting to 295 billion rubles. At 0.51% per annum (DIA itself provided the money to the Bank of Russia) to cover the newly formed "holes" in the accounts of the bank.<ref name="комм_10_2011">{{cite web| url=http://kommersant.ru/doc/1787381| title=Another approach could not be| date=4 October 2011| publisher=// Коммерсантъ, № 185 (4726), 4 October 2011| accessdate=4 October 2011}} (In Russian)</ref><ref name="ved_07_2011">{{cite web|author= Tatiana Voronova.|url=http://www.vedomosti.ru/newspaper/article/263244/bez_uscherba_dlya_vtb|title= Without prejudice to the VTB |publisher=// Ведомости, 4 July 2011, № 120 (2886)|accessdate=4 July 2011}} This is a Russian Article</ref>

On 29 July 2014 the Office of Foreign Assets Control (OFAC) published that the Bank of Moscow and VTB Bank OAO, which is the second-largest bank in Russia, has been added to the Sectoral Sanctions Identifications List. A United States person or a person in the United States is restricted from buying equity issued by these banks or lending money to these banks (i.e., buying debt issued by these banks). The sanction is for "transacting in, providing financing for, or otherwise dealing in new debt of longer than 90 days maturity or new equity" with these banks or their property or interests in property.<ref>{{Cite web|title=Announcement of Additional Treasury Sanctions on Russian Financial Institutions and on a Defense Technology Entity |url=https://www.treasury.gov/press-center/press-releases/Pages/jl2590.aspx |publisher=US Department of the Treasury|access-date=10 February 2018}}</ref><ref>{{Cite web|title=Sectoral Sanctions Identifications; Kingpin Act Designations; Iran Designations Update; Ukraine-related Designation |url=https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20140729.aspx |publisher=US Department of the Treasury|access-date=10 February 2018}}</ref><ref name=Ukraine-EO13662>{{cite web | last = President of The United States | title = Ukraine EO13662 | url = https://www.treasury.gov/resource-center/sanctions/Programs/Documents/ukraine_eo3.pdf | publisher = Federal Register | date = 24 March 2014 | accessdate = 10 February 2018}}</ref><ref name=OFACssiList>{{Cite web|title=Sectoral Sanctions Identifications (SSI) List |url=https://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/ssi_list.aspx |publisher=OFAC|access-date=24 March 2018}}</ref><ref name=OFACfaqEO13662CAATSA>{{cite web | title = Ukraine-/Russia-related Sanctions: Sectoral Sanctions under Executive Order 13662, CAATSA | url = https://www.treasury.gov/resource-center/faqs/Sanctions/Pages/faq_other.aspx#ukraine | publisher = OFAC | number = EO 13662: 370–5, 550, 391-6, 404-21, 536-8, 453-4; CAATSA: 539–46, 552 | access-date = 24 March 2018}}</ref><ref name=BBC140730Sanctions>{{cite web|title=Ukraine conflict: US and EU widen sanctions on Russia |url=https://www.bbc.com/news/world-europe-28551391 |publisher=BBC |date=30 July 2014 |accessdate=10 February 2018}}</ref>{{Disputed inline|False_Claim:_VTB_was_on_the_OFAC_SDN_list|date=March 2018|for=statement is counter factual and not supported by any of the given references}}

On 31 July 2014 VTB and its subsidiaries, such as the Bank of Moscow, were added to the European Union sanctions list due to its role in the annexation of Crimea by the Russian Federation.<ref name=2014EU833>{{cite web|url=https://eur-lex.europa.eu/eli/reg/2014/833/oj|title=COUNCIL REGULATION (EU) No 833/2014 concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine |work=THE COUNCIL OF THE EUROPEAN UNION |date=2014-07-31 |publisher=eur-lex.europa.eu |access-date=2018-02-10}}</ref> VTB assets and its subsidiaries, such as Bank of Moscow, in the EU have to be frozen.{{fact|date=September 2025}}

On 13 August 2014, the United States clarifies entities under sectoral sanctions. United States increases its sectoral sanctions on VTB Bank together with its subsidiaries ("the VTB Group") and the Bank of Moscow through its parent bank, VTB Bank OAO, and other entities that VTB has 50% or greater ownership either individually or in the aggregate, either directly or indirectly. Also, US persons cannot use a third party intermediary, and they must use caution during "transactions with a non-blocked entity in which one or more blocked persons has a significant ownership interest that is less than 50% or which one or more blocked persons may control by means other than a majority ownership interest."<ref name=US140813>{{cite web | title = Revised Guidance on Entities Owned by Persons Whose Property and Interests in Property Are Blocked | url = https://www.treasury.gov/resource-center/sanctions/Documents/licensing_guidance.pdf | publisher = United States Department of Treasury | date = 13 August 2014 | access-date = 22 March 2018}}</ref>

On 12 September 2014, the United States issues a consolidated listing of directives associated with Executive Order 13662 sanctions during the Russo-Ukrainian war. For the Russian financial sector, Directive 1 was amended to increase the financial sanctions on the Russian financial sector for "all transactions in, provision of financing for, and other dealings" in new equity or new debt issued on or after 12 September 2014 to ''longer than 30 days maturity''. New equity or new debt issued from 29 July 2018 until 12 September 2018 was sanctioned if ''longer than 90 days maturity''.<ref name=OFACfaqEO13662CAATSA/><ref name=US140912>{{cite web | title = Ukraine-related Sanctions | url = https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20140912.aspx | publisher = United States Department of Treasury | date = 12 September 2014 | access-date = 22 March 2018}}</ref><ref name=EO13662directives>{{cite web | title = Ukraine-/Russia-related Sanctions; Sectoral Sanctions Identifications (SSI) List: EO 13662 Directives | url = https://www.treasury.gov/resource-center/sanctions/Programs/Pages/ukraine.aspx#directives | publisher = United States Department of Treasury | access-date = 24 March 2018}}</ref><ref name=EO13662DirectiveOne140912>{{cite web | title = Directive 1 (as amended) under Executive Order 13662 | url = https://www.treasury.gov/resource-center/sanctions/Programs/Documents/eo13662_directive1.pdf | publisher = OFAC | date = 12 September 2014 | access-date = 24 March 2018}}</ref>

On 22 December 2015, the United States explicitly lists VTB Bank and its subsidiaries that are sanctioned. Previous United States sanctions on VTB and its subsidiaries have already restricted VTB, VTB Global, Bank of Moscow, and other entities from gaining long-term financial support from any United States person or person in the United States.<ref name=Ukraine-EO13662/><ref name=OFACssiList/><ref name=OFACfaqEO13662CAATSA/><ref name=OFAC22December2015pr>{{Cite web|url=https://www.treasury.gov/press-center/press-releases/Pages/jl0314.aspx|title=Treasury Sanctions Individuals and Entities for Sanctions Evasion and Other Activities Related to Russia and Ukraine: Underscores U.S. Commitment To Work with the EU To Maintain The Efficacy of Existing Sanctions Until Russia Fully Complies With Its International Obligations With Respect To Ukraine|date=22 December 2015|publisher=US Department of the Treasury|access-date=10 February 2018}}</ref><ref name=OFAC22December2015>{{Cite web|title=Russia/Ukraine-related Sanctions and Identifications: Specially Designated Nationals List Update |url=https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20151222.aspx |publisher=US Department of the Treasury|date=22 December 2015|access-date=10 February 2018}}</ref>

On 1 September 2016, the United States explicitly lists Bank of Moscow and its subsidiaries that are sanctioned. Previous United States sanctions on VTB and its subsidiaries have already restricted VTB, VTB Global, Bank of Moscow, and other entities from gaining long-term financial support from any United States person or person in the United States.<ref name=Ukraine-EO13662/><ref name=OFACssiList/><ref name=OFACfaqEO13662CAATSA/><ref name=OFAC01September2016pr>{{Cite web|url=https://www.treasury.gov/press-center/press-releases/Pages/jl5048.aspx|title=Treasury Sanctions Individuals and Entities for Sanctions Evasion and Other Activities Related to Russia and Ukraine: U.S. Will Maintain Sanctions Pressure Until Russia Has Fulfilled All of Its Commitments under the Minsk Agreements|date=1 September 2016|publisher=US Department of the Treasury|access-date=24 March 2018}}</ref>

On 28 November 2017, the United States increases the Executive Order 13662 sanctions to the Russian financial sector. For the Russian financial sector, Directive 1 was amended to increase the financial sanctions on the Russian financial sector for "all transactions in, provision of financing for, and other dealings" in new equity or new debt issued on or after 28 November 2017 to ''longer than 14 days maturity''. New equity or new debt issued from 12 September 2014 until 28 November 2017 was sanctioned if ''longer than 30 days maturity''.<ref name=EO13662DirectiveOne170929>{{cite web | title = Directive 1 (as amended) under Executive Order 13662 | url = https://www.treasury.gov/resource-center/sanctions/Programs/Documents/eo13662_directive1_20170929.pdf | publisher = OFAC | date = 29 September 2017 | access-date = 24 March 2018}}</ref>

==References== {{Reflist}}

==External links== {{commons category}} {{Portal|Banks}} * [https://web.archive.org/web/20110723021945/http://www.bm.ru/en/about/ bank website] * VTB

{{Authority control}}

Category:Defunct banks of Russia Category:Companies based in Moscow Category:Russian brands Category:Russian entities subject to U.S. Department of the Treasury sanctions