The FINANCIAL — Bank of Moscow President Andrei Borodin, who fiercely opposed the acquisition of his bank by state-controlled bank VTB, has sold his stake to Vitaly Yusufov, son of former Russian Energy Minister Igor Yusufov, Vedomosti business daily quoted Vitaly Yusufov as saying on April 11, according to RIA Novosti.
"I have acquired 19.91% of shares in Bank of Moscow and will consider other opportunities to increase the stake," Yusufov told Vedomosti.
Borodin and his aide Lev Alaluyev owned 20.3% in Bank of Moscow.
"I am not happy with the price," Borodin told Vedomosti. "You can sell quietly and for a real price when your arms are not twisted."
Borodin said the deal was done in VTB's interests.
A source close to one of the Bank of Moscow's shareholders said the deal with Yusufov was signed in March.
"The deal has been discussed since November and (VTB President Andrei) Kostin has many times participated in these discussions. The buyer's actions were agreed with VTB," he said.
VTB bought 46.48% of Bank of Moscow, Russia's fifth largest bank by assets, from the Moscow government for 103 billion rubles ($3.6 billion) in February, as well as a 25 percent stake in insurer Stolichnaya Strakhovaya Gruppa, which owns 17.3 percent in Bank of Moscow.
VTB said it wanted to buy 100% of the bank by summer. That plan hit a snag when Borodin, a close ally of former Moscow mayor Yury Luzhkov who was fired last fall by President Dmitry Medvedev, was reluctant to sell his shares.
Borodin fled to London last week and on Wednesday made three proposals to VTB, including selling his stake quickly with no mutual claims.
Borodin faces possible criminal charges connected with a 12.76-billion ruble loan Bank of Moscow granted to a little-known real estate company. The police say the money came from the city budget and ended up in the personal account of Luzhkov's wife Yelena Baturina. Bank of Moscow says it violated no rules when issuing the loan.
A police source has said Russia's Interior Ministry put Borodin and his First Deputy Dmitry Akulinin on a wanted list. Borodin faces up to 10 years in prison if found guilty.
Borodin has said he is not seeking political asylum in Britain and hoped to mend fences with the Russian government.