YEREVAN, OCTOBER 27, NOYAN TAPAN. Mikhail Baghdasarov was the first to offer VTB Bank to acquire his 30% of VTB Bank Armenia shares. Vasily Titov, Senior Deputy Chairman and member of the board of VTB Bank (former Vneshtorgbank), said this at the October 27 press conference. In his words, M. Baghdasarov made VTB an official offer, which was accepted and is now being discussed. "When we decide on a certain price, we'll be ready to make a decision to conduct a deal," V. Titov said. In his opinion, this process will take 2-3 months. To recap, in April of this year Armsavingsbank was renamed "VTB Bank Armenia". Vneshtorgbank acquired the stake of 70% + 1 share from the bank's owner M. Baghdasarov in 2004. According to Chairman of VTB Bank Armenia Board Alexander Vardanov, VTB Armenia ranks first among the 21 Armenian banks by the crediting of corporate customers (14% as of July 1, 2006), second by the amount of deposits attracted from the population (10%) and ranks 2nd-4th by its capital (about 24 mln USD as of October 1, 2006). He said that over the past year the bank increased 6fold the total amount of its mortgage, car purchase and small business crediting. V. Titiov noted that it is desirable that the bank would be among the indisputable leaders, especially in the sphere of retail banking services, considering VTB Bank Armenia's network of 100 branches throughout Armenia as a guarantee of this. The board chairman added that the bank will take a decision about bond issue in the next 6-12 months. In response to a question of NT correspondent, A. Vardanov said that due to some peculiarities of external trade activity both in Russia and Armenia, it is quite difficult to decide what share of the trade between the two countries is serviced by VTB Bank Armenia. "We service and finance everything related to the companies Electric Networks of Armenia, International Energy Corporation and ArmRusgazprom: it is hard to assess the share - it will probably make up 70-90%. Practically, it is all business with the Russian capital, except for the Hrazdan Thermal Power Plant," A. Vardanov said. V.Titov added that VTB services 17% of Russia's trade with other countries. BTB group is composed of Vneshtorgbank, Vneshtorgbank 24, Promstrybank, a bank in each of the following countries: the UK, France, Austria, Germany, Switzerland, Cyprus, and Luxemburg, as well as joint banks in Namibia and Angola. According to V. Titov, the issue of VTB's participation in the banking systems of Kazakhstan and Belarus will be settled soon with the banking authorities of these countries. VTB also intends to enter the banking systems of such countries as Moldova, Kyrghyzstan and Uzbekistan. He expressed a hope that it will allow to create a bank group with greater opportunities to receive money transfers and loans on the foreign market. In the first half of 2006, VTB Group's net consolidated profit made 576 million USD, exceeding threefold the respective index of last year. Its assets amounted to 45 bln 327 mln USD as of July 1, 2006.

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