The number of new accounts in the Chinese branch of VTB doubled last year

In 2023, there was a “huge increase” in the volume of payments that went through the VTB branch in China, and the number of new clients served in the branch doubled. Olga Basha, Head of the Department for the Development of International Settlements, Senior Vice President of VTB, spoke about this at the business breakfast on foreign economic activity “Competition in a changing world and new logistics: solutions of Russian companies,” organized by the Kommersant Publishing House.

She recalled that VTB is traditionally focused on foreign economic activity and therefore has points of presence in China, India, Vietnam, and a representative office in Iran. “We are the first bank to be subject to the toughest sanctions. And the detuning (of payments—Kommersant) occurred precisely due to points of presence, closed communication channels that allow settlements to be made without using SWIFT in national currencies,” said Ms. Basha.

According to her, trade turnover in China is growing at an “incredible pace.” “We are the only Russian bank that has a full-fledged branch there with a license from the Chinese regulator. On the one hand, this imposes a lot of restrictions and regulatory requirements. But this is also a competitive advantage, since Chinese banks and counterparties view us as a local player,” she explained.

“The focus on China is clear; in 2023 we see a huge increase in payments that went through our branch in China, both in volume and quantity. Only the number of open accounts of new clients has doubled over the past year,” continued Olga Basha. “Our network has been developing for more than ten years, and since the introduction of sanctions, the growth of payments in national currencies has been multiple, four times for each location.”

Ms. Basha also spoke about the Indian direction and the resolved “problem of stuck rupees,” which the media actively wrote about at the end of 2023. “What does this have to do with? First of all, with the trade imbalance. We, as a bank, are waiting for counter-imports to be made in order to ensure payment for exports in national currencies. With India, this imbalance is 11 to 1. It is difficult to block oil flows with spices and tea, but we are trying,” said VTB Senior Vice President. According to her, the “problem of stuck rupees” has now been resolved thanks to the efforts of the bank, foreign trade participants and trade missions.

“Now exporters and importers feel much more comfortable when making payments in national currencies. Just a couple of years ago they had to be convinced, because there was a dollar, and no one needed it. Now clients themselves come for advice: how to properly structure contracts, how to properly build chains, think through how payments will go,” Olga Basha summarized.

How citizens are increasing the volume of deposits in Chinese currency – in the Kommersant publication “Deposits have their own yuan”.