East-West United Bank

East-West United Bank is a bank based in Luxembourg,[1] owned by Sistema.[2] The bank offers private banking[3] and corporate financing.[4] East-West United Bank was established on 12 June 1974 as a "daughter" bank[5] of the Soviet Union's Central Bank

History

With the support of Mr. Pierre Werner, who was the Prime Minister of the Grand Duchy of Luxembourg, on 12 June 1974, the East-West United Bank (EWUB) (Luxembourg) was formed with both the State Bank of the USSR or Gosbank and after the end of the Soviet Union, the Central Bank of Russia, and Russia's Foreign Trade Bank Vneshtorgbank (VTB) as the main shareholders from founding until 1992.[6][7][8]

From 1992 to 2000, Imperial Bank had a major stake in EWUB of 49%[6][7][8] and Tokobank held a 28% stake in EWUB in 1998,[9][10] but, on 17 April 2000, Imperial Bank was dissolved.[11] Imperial Bank focused on oil and natural gas supplies to East Germany and later to Germany including the oil-for-pipes program.[12][13][lower-alpha 1]

When VTB had a major stake in EWUB from 2000 to 2007, EWUB was one of the five foreign banks of Russia's VTB banking network.[6][7][8][14][15][lower-alpha 2]

Beginning in 2001, the Vladimir Yevtushenkov led Sistema gained a stake in EWUB.[14] Through Sistema's subsidiary Moscow Bank for Reconstruction and Development (MDRB) (Russian: Московский банк реконструкции и развития «МБРР»), which was established in 1993 with Sistema as a shareholder since 1994, Sistema controlled a 49% stake in East-West United Bank (EWUB) in February 2005 and, since 2007 Sistema has had the majority stake in EWUB.[6][7][8][15]

In 2018, Sistema became 100% owner of EWUB with Sergei Pchelintsev (Russian: Сергей Алексеевич Пчелинцев) as the CEO.[20][21][22][23][24]

According to a declaration given on 18 October 2018 in Spainish court by Sergey Dozhdev (Russian: Сергей Дождев), Igor Sechin uses his offshore companies to control Sistema through MTS and Bashneft.[25][26][27][lower-alpha 3]

In 2020, EWUB had €677 million in assets.[5] As of 2022, Russian billionaires are known to be beneficiaries of the bank.[28]

On 27 June 2020, Etienne Schneider became an independent director of Sistema and his close political friend Jeannot Krecké was a director at Sistema beginning in May 2012.[29][14] In March 2022, Krecké at Sistema and Schneider at EWUB resigned form their positions on their respective boards after public pressure resulting from the 2022 Russian invasion of Ukraine.[30][31]

Following the February and March 2022 sanctions issued against VTB and its subsidiaries which include the former daughter banks of the Soviet Union's State Bank Gosbank and later the Central Bank of Russia, EWUB in Luxembourg has become the principal Russian overseas bank in Europe after Gazprombank's liquidation.[32] As of early April 2022, Yevtushenkov, Sistema, and its subsidiary East-West United Bank (EWUB) in Luxembourg have not been sanctioned due to Russian interference in Ukraine.[32][33]

Director

Vladimir Malinin: 1977 to 1984[34][35][lower-alpha 4]

Notes
  1. With Vnesheconombank managing Soviet debt, Imperial Bank speculated in GKOs but collapsed with the demise of the GKO market following the 1998 financial collapse in Russia.[12]
  2. VTB has the western subsidiaries of the Central Bank of Russia and, before the dissolution of the Soviet Union, the daughters of the Soviet Union's Gosbank which were the 1921 established and Leonid Krasin associated Banque commerciale pour l'Europe du Nord or BCEN-Eurobank in Paris, Moscow Narodny Bank in London, the 1971 established Ost-West Handelsbank (OWH) in Frankfurt, the 1974 established Donau Bank in Vienna, and East-West United Bank in Luxembourg.[16] In order to financially assist Communist Parties, anti-imperialism, and pro national liberation movements worldwide, these banks acted as subsidiaries or daughters to their "mother" Gosbank, which was the central bank of Russian Soviet Federative Socialist Republic (Russia) from 1921-1922 and the Soviet Union from 1923-1991. These banks only support the Kremlin's objectives.[17][18][19]
  3. Sergey Dozhdev (Russian: Сергей Дождев) stated "The real Russian mafia is those who rule the world. In particular, it includes Igor Sechin, a man who took over Sistema through Bashneft and MTS using his offshore companies. The Rotenberg brothers, who control the Platon Company, are in the mafia too. 75 percent of Platon belongs to offshore companies, which the Rotenbergs use to siphon off money to Europe. Arnold Tamm used to co-own Sistema. However, he had a disagreement with the Rotenberg brothers, and Herman Gref ceased the refinancing of loans through his son Arkady. The company incurred artificial liabilities, and Sechin bought it at a low price through offshore companies."[25]
  4. Malinin, Vladimir Georgievich (Russian: Малинин, Владимир Георгиевич; 29 June 1940 Moscow, Soviet Union - 4 February 2021 Vienna, Austria) graduated from the Financial University in 1963 with a degree in economics. From 1964 to 1968, he was at Vneshtorgbank of the USSR as an inspector, senior economist, senior consultant, head of the foreign exchange and cash operations department, and from 1968 to 1969 he was the Deputy Chief Accountant. From 1969 to 1970, he was at Moscow Narodny Bank Limited in London and then transferred to its Beirut branch and from 1970 to 1971, he was the chief accountant under Viktor Gerashchenko and from 1971 to 1974, the deputy general manager under Tomas Alibegov. After EWUB, Malinin returned to Vneshtorgbank of the USSR and from 1984 to 1985 was the head of the foreign bank loans department then in 1985 was the head of the department for monitoring the operational activities of overseas Soviet banks until February 1988 when he became the Deputy Chairman of the Board of the Vnesheconombank of the USSR until December 1990. He moved to Vienna and from December 1990 to April 1996, he was Chairman of the Board of Donau Bank. In 2012, he became an independent director at Vozrozhdenie Bank and served on its board of directors until his death in 2021.[34][35]

References
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