MOSCOW Oct 11 Russia's second-largest bank VTB
is likely to adjust its investment banking activities
in London because of Britain's vote to leave the European Union,
but the scale of the changes will depend on how Brexit unfolds,
it said on Tuesday.
The Financial Times reported on Tuesday that the bank would
move its European headquarters out of London because of Brexit,
but VTB said in a statement that its European headquarters were
located in Vienna, not London, and its operations in the
Austrian capital would continue unchanged.
"Due to Brexit, VTB will be adjusting its activities in
London but there is no intention of closing our business there,"
the bank said.
"Relocating from London or maintaining our presence there
will depend on how Brexit unfolds."
VTB has already cut staff numbers in London, sources have
told Reuters, since its global ambitions were hit after it was
included in Western sanctions over the Ukraine conflict in 2014.
The bank has also long discussed the possibility of moving
its European headquarters from Vienna.
VTB CEO Andrei Kostin said in October last year that the
bank was considering moving its European HQ to Frankfurt.
On Tuesday, VTB said the location of its European
headquarters would be decided as part of its strategy for 2019.
(Reporting by Alexander Winning; Editing by Andrew Osborn and