Russian bank VTB to lend Essar $1 billion

Russian banks have faced difficulties in refancing due to Western sanctions.

Russian bank VTB will open a $1 billion credit line to India's Essar Group, chief executive Andrei Kostin said on Thursday during a visit to New Delhi by President Vladimir Putin.

Kostin also said that VTB would not ask for more than 250 billion roubles ($4.6 billion) in financial assistance from a government rainy-day fund called the National Wealth Fund.

Russian banks have faced difficulties in refancing due to Western sanctions.

Kostin also said that state-controlled VTB has no plans to leave the London Stock Exchange, where its shares are listed.

($1 = 54.9200 roubles)

Image: Russian bank VTB. Photograph: Kind courtesy, wikimedia commons