Andrey Kostin, chief executive of Russia's major state-owned bank VTB, said in a speech at an event held by the Russian Banks Association on the 24th that major Russian companies are holding back investment in their core businesses out of concern over government asset seizures. According to estimates compiled in September by the Moscow law firm Nektorov, Saveliev and Partners, Russian authorities have seized assets worth about 7.6 trillion rubles, or 89.5 billion dollars, since 2022 on grounds including corruption and national security. Kostin pointed out that property rights have become a major concern for companies, explaining that many executives are looking to set funds aside rather than put them into their core businesses. He said he believes such concerns are exaggerated, but that they do exist and companies must be protected. He noted that while the overall investment climate is deteriorating, investment from China is increasing and investors from Arab countries are also showing interest, and expressed the view that geopolitics will be the biggest factor going forward.
VTB CEO says asset-seizure fears are curbing major companies' core-business investment, a regulatory/property-rights concern he acknowledges exists.
