Russia’s sanctioned VTB Bank wants to build ships with China, defiant CEO says on trip with Putin in Beijing

Russian state lender, tasked with saving a struggling state shipbuilding firm, needs China’s help as bilateral ties continue to strengthen amid external pressure

CEO Andrey Kostin hails broader use of the yuan and continues to decry the effects of Washington’s sanctions on the global financial system

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VTB CEO Andrey Kostin spoke to the Post about partnering with China. Photo: Getty Images

Frank Chenin ShanghaiandFrank Tangin Beijing

Published: 10:00pm, 23 Oct 2023Updated: 11:56am, 24 Oct 2023

Grappling with the financial repercussions of the Ukraine war and Western sanctions, Russia’s second-largest lender is turning to China for lucrative opportunities to offset losses – and they have even floated the idea of building ships together.

VTB Bank, cut off by Washington from the global dollar system, was entrusted by Russian President Vladimir Putin in August to manage the state-owned United Shipbuilding Corporation (USC).

With the conglomerate in financial straits, Moscow wants to see VTB “attract external funding” to salvage it.

Enter its CEO, Andrey Kostin, who accompanied Putin on a trip to the belt and road forum in Beijing last week. Speaking to the Post, he said he was looking to scout out Chinese partners in finance and shipbuilding.

In the face of sweeping US sanctions, Russia has turned increasingly reliant on China since invading Ukraine in February 2022.