RIGHT?
LET'S TAKE IT TO A RUSSIAN WHO
HAS SANCTIONS SLAPPED ON BOTH
HIM AND HIS COMPANY.
ANDREY KOSTIN, CHAIRMAN OF
RUSSIA'S SECOND LARGEST BANK,
VTB, JOINING US FROM DAVOS.
YOU MADE IT.
LAST TIME WE SPOKE AT THE WORLD
ECONOMIC FORUM THEY DISINVITED
YOU.
WHAT HAPPENED?
>> FIRST OF ALL, I WOULD LIKE TO
TELL YOU TRULY THAT WE VERY MUCH
MISS YOU HERE IN DAVOS.
BELIEVE ME, WE MISS YOU EVEN
MORE THAN WE MISS MR. TRUMP
HERE.
BUT DAVOS, YOU KNOW, DAVOS IS
MAYBE QUITE PROMINENT FOR THOSE
WHO DIDN'T COME.
I THINK THERE'S A LITTLE BIT
MISUNDERSTANDING OR MAYBE TOO
MUCH ATTENTION PAID TO SOME
COMPLIANCE PEOPLE BUT AT THE END
OF THE DAY, FRANKLY SPEAKING,
I'M GLAD THAT I'M HERE.
IT WAS MY 24th DAVOS AND I LIKE
THIS.
I LIKE IT AND I THINK IT'S QUITE
USEFUL FOR ME AND FOR MY
PARTNERS.
LIZ: WITH ALL DUE RESPECT, LET'S
GET TO THE MAIN SOVEREIGN WEALTH
FUND COMMENTS.
THE SOVEREIGN WEALTH FUND IS NOT
SANCTIONED, AT LEAST NOT THE
PORTION HE CONTROLS.
LET'S GET THE STORY FROM YOU.
IT'S HARD TO BELIEVE U.S.
SANCTIONS ARE HURTING AMERICA
MORE THAN RUSSIA.
YOU AS A SANCTIONED PERSON, AND
YOUR COMPANY, TELL ME WHAT YOU
THINK OF THAT COMMENT.
>> YOU KNOW, LIZ, I THINK IN A
DIFFERENT WAY.
I THINK WHAT HURTS MORE IS THAT
WE HAVE RELATIONSHIP BETWEEN OUR
TWO GREAT COUNTRIES, WORSE AND
WORSE.
FRANKLY SPEAKING, I DON'T EXPECT
THAT WITHIN THE NEXT TEN YEARS,
THESE RELATIONS CAN BECOME
BETTER.
IT'S FOR MANY REASONS, BUT
MAINLY BECAUSE THE OLD POLITICAL
ELITE IN AMERICA IS -- BECAUSE
MR. TRUMP, I DON'T KNOW WHETHER
MR. TRUMP WOULD LIKE TO IMPROVE
RELATION WITH RUSSIA OR NOT BUT
EVEN IF HE DOES, HE'S NOT IN A
POSITION TO DO ANYTHING IN THIS
REGARD.
SO I THINK IT HURTS THE GENERAL
CLIMATE IN THE WORLD, IT HURTS
THE STABILITY, IT HURTS THE
PROCESS.
AS YOU KNOW, WE ARE NOW ON THE
VERGE OF THE BREAK OF MAJOR
DISARMAMENT AGREEMENT BETWEEN
OUR TWO COUNTRIES.
THE WORLD IS BECOMING MORE
DANGEROUS AND I THINK THAT'S BAD
FOR BOTH AMERICA AND RUSSIA.
I WOULD NOT VERY MUCH AGREE,
FRANKLY SPEAKING, BUT IT
DEFINITELY DAMAGES THE RUSSIAN
ECONOMY BUT NOT WITH SUCH EXTENT
AS PROBABLY SOMEBODY HOPED AND
THAT YOU KNOW, THE RUSSIAN
ECONOMY IS DOING RELATIVELY
WELL.
VTB BANK IS DOING QUITE WELL.
BUT I PREFER NOT TO HAVE
SANCTIONS, NOT TO BE UNDER
SANCTIONS, BOTH PERSONALLY OR --
LIZ: I APPRECIATE YOUR HONESTY
BECAUSE WHEN WE HEARD HIM
BLURTING THAT OUT IN DAVOS, WE
THOUGHT REALLY, IT'S NOT REALLY
HURTING THE U.S. THAT MUCH, AT
LEAST AT THE MOMENT.
BUT HOW HAVE YOU SPECIFICALLY AT
VTB BANK ADJUSTED TO THE
SANCTIONS AGAINST YOU?
>> WELL, YOU KNOW, UP UNTIL NOW
THE TWO MAJOR RESTRICTIONS IS TO
BORROW MONEY IN THE WEST AND TO
SELL NEW STOCKS, SO WE HAVE
ENOUGH LIQUIDITY IN RUSSIA AND
WE HAVE ENOUGH PROFIT NOW TO
INCREASE OUR CAPITAL.
SO AGAIN, WE WOULD LOVE TO BE
ABLE TO COME BACK TO AMERICAN
MARKET OR INTERNATIONAL MARKETS,
WE WOULD LIKE TO SELL MORE
STOCKS, WE WOULD LIKE TO
CONTINUE OPERATION BUT IT'S NOT
POSSIBLE NOW SO WE ARE WORKING,
WE ARE FOCUSING ON OUR BUSINESS
MAINLY IN RUSSIA SO WE ARE
FOCUSING ON RUSSIA AND WE
CONTINUE TO CONDUCT OUR
BUSINESS.
LIZ: YOU WANTED TO CONTINUE TO
DO BUSINESS IN THE U.S. AND OPEN
BANK BRANCHES.
YOU GUYS ARE STILL SANCTIONED
BUT TWO WEEKS AGO, THE U.S.
TREASURY DEPARTMENT ANNOUNCED IT
WAS GOING TO EASE SANCTIONS ON
RUSSIAN OLIGARCH OLEG
DERIPASKA'S COMPANIES INCLUDING
HIS ALUMINUM GIANT.
WHAT PUTS DERIPASKA IN A
DIFFERENT CATEGORY THAN THE REST
OF YOU WHO STILL HAVE SANCTIONS
ON YOU?
>> I DON'T THINK IT'S A
DIFFERENT CATEGORY BUT BECAUSE
PERSONALLY, HE'S UNDER
SANCTIONS.
LIZ: SO ARE YOU.
>> IT'S ALL ABOUT HIS COMPANY.
YEAH, YEAH, BUT I MEAN, MY
BUSINESS IS NOT UNDER SANCTIONS
AS MR. DERIPASKA.
WE SHALL SEE.
I THINK IT WOULD BE NICE IF THE
SANCTIONS ARE WITHDRAWN.
LIZ: THE PROBLEM MAY BE YOU ARE
KNOWN IN SOME CIRCLES AS
VLADIMIR PUTIN'S BANKER.
THE RUSSIAN STATE OBVIOUSLY OWNS
A SECTION OF VTB AND THAT MAY BE
YOUR PROBLEM.
>> YOU KNOW, IT'S NOT A PROBLEM.
I DON'T KEEP MR. PUTIN'S MONEY.
I THINK THE THING WITH MR. PUTIN
IS VERY MUCH OVERRATED IN THE
WEST.
BUT I AM HIS SUPPORTER AND I
THINK HE DOES A LOT OF GOOD
THINGS FOR THE COUNTRY AND HE'S
OUR PRESIDENT.
SO IT'S FINE.
LET IT BE.
LIZ: LET IT BE.
THE BEATLES SAID THE SAME THING.
ANDREY, THANK YOU VERY MUCH.
WE APPRECIATE YOU COMING ON.
>> THANK YOU, LIZ.
THANK YOU VERY MUCH.
LIZ: WE'VE GOT MORE WITH ANDREY
KOSTIN.
LOG ON TO LIZCLAMAN.COM FOR THE
ONLINE EXCLUSIVE BECAUSE WE ALSO
ASKED HIM ABOUT BLACK GOLD,
OBVIOUSLY OIL, AND HOW RUSSIA'S