Russia's Lingering Sanctions: Insights from VTB's CEO

Andrei Kostin, CEO of VTB, Russia's second-largest bank, expressed skepticism about the quick lifting of Western sanctions on Russia. He compared the sanctions to the long-held Jackson-Vanik amendment and speculated that Russia's frozen forex reserves might be used for Ukraine's reconstruction, without being returned.

The possibility of Western sanctions on Russia being lifted soon seems bleak, according to VTB's CEO, Andrei Kostin. In a candid conversation with Reuters, he reflected on the enduring nature of these sanctions, drawing parallels with historical trade restrictions.

Kostin highlighted the long-standing Jackson-Vanik amendment, which linked trade with the Soviet Union to religious emigration rights, as an example of how such measures can persist. He expressed much doubt about the return of Russia's frozen forex reserves by Western nations.

Furthermore, Kostin anticipated that instead of being returned, these reserves might be utilized to fund the rebuilding of Ukraine, pointing to proposed legislation that might ensure even those assets would not suffice.

(With inputs from agencies.)