ST PETERSBURG, Russia, July 13 (Reuters) - Implementing stricter banking regulations known as Basel III will cost Russian state bank VTB up to 14 billion roubles ($233 million) a year, chief executive Andrey Kostin said on Thursday.
The Basel III rules, designed to avoid a repetition of the 2008 financial crisis, include tighter capital requirements.
The Russian central bank is gradually adopting the rules for its domestic banking system.
Kostin told a banking conference in St Petersburg that Western sanctions on some Russian banks, including VTB, made implementing Basel III more expensive than for Western banks.
“We estimated that for us the Basel III costs around 14 billion roubles per year. It’s a significant hit on our revenues, on our profit,” he said.
For the whole of 2016, VTB reported net profit of 51.6 billion roubles compared with 1.7 billion roubles in 2015. ($1 = 60.0425 roubles) (Reporting by Andrey Ostroukh, Elena Fabrichnaya and Kira Zavyalova; Writing by Denis Pinchuk; Editing by Edmund Blair)