VTB’s Kostin Says Sanctions May Hurt Financial System

Andrey Kostin, chief executive officer of VTB Group, criticized the latest round of sanctions on Russian businesses imposed by the U.S. and the European Union, saying they threaten to destabilize the financial system.

“These types of actions -- applying sanctions or large penalties -- they can lead, unfortunately, in essence to the disintegration of the financial system,” Kostin told state-run Rossiya 24 television today. The sanctions against financial institutions such as OAO Gazprombank and VEB, “they affect the interest of hundreds of thousands, millions of people and corporate clients. Undoubtedly the consequences could be negative for the Russian economy.”