Sberbank and VTB, Russias two biggest banks (both state-owned), want to grab market share in commodities trading and financing, in and outside Russia. Its partly in line with their growing sophistication and internationalization as banks. But the fallout from political and regulatory pressures on US banks commodities arms appears to have hardened their resolve. Although theres not a mass exodus, were seeing a reshuffling and a movement [in commodities] towards banks in resource-rich regions, says Thierry Groell, global head of commodities at VTB Capital.
VTBs international commodities business might change further because of the expansion of state control of the local oil industry under Rosneft, which has increased ties with CNPC (China National Petroleum Corporation). In October VTB Capital said CNPC had signed a deal for VTB to provide it with any oil and gas-related banking service in Russia which might include assisting with physical oil and gas deliveries.