Thursday, 20 September

By Owning Shares in an Armenian Bank, Azerbaijan Has Interests in the Country's Mining Sector



It appears that there’s  an Azerbaijani connection to the banking sector in Armenia.

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) owns a 3% share in VTB Bank JSC, which in turn owns 100% of VTB Bank (Armenia) CJSC.

VTB Bank (Armenia) was founded in March 2004 when Russia’s Foreign Trade Bank – Vneshtorgbank (formerly VTB Bank) acquired 70%+1 of the shares of HayKhnayBank. In 2006, the bank was rebranded as VTB Bank (Armenia). In 2007, VTB Bank JSC acquired the remaining shares (30% minus one).

So who are the other shareholders of VTB Bank JSC? According to the published list on the bank’s website, the largest shareholder is Russia (61%), followed by Norges Bank (the Central Bank of Norway) with 4.3% and SOFAZ (2.9%)

The SOFAZ was established by Decree № 240 of Azerbaijani President Heydar Aliyev on December 29, 1999 and has reserves of over US $30 billion.

VTB Bank has extended loans to Teghout CJSC, the company which operates the Teghout mine in Armenia. According to a 2011 financial loan agreement, 100% of the shares of Teghout CJSC were transferred to Teghout Investment Limited, registered in Cyprus. The Vallex Group subsidiary owns 50.05% of Teghout Investment Limited and the remainder is owned by VTB Group.

As a result, Azerbaijan, via VTB Bank, is financing the mining operation at Teghout.


Home page


See also

more news



Comments (8)
1. Karen16:52 - 10 April, 2014
Հայաստանյան ՎՏԲ-ը մինչև 2007թ. էր 30% ադրբեջանական.. իսկ ինչ որ գրել եք, եփած հավի ծիծաղը կգա:
2. Վիկտոր Սիմոնյան18:46 - 10 April, 2014
անիմաստ բան է, անտրամաբանական... վարկը տվել են ԱՄՆ դոլարով, ուրեմն՝ ամերիկան էլ է խառը, վտբ-ի պաշտոնյաների ծառայողական մեքենաները նիսաններ ու մերսեդեսներ են, ուրեմն՝ գերմանիայի ու ճապոնիայի մատն էլ է խառը էս գործում... հետո՞ սա դառավ հոդվա՞ծ
3. Լիլիթ11:19 - 11 April, 2014
փաստորեն ադրբեջանը կարա աշխարհի բոլոր բանկերի մեկական բաժնետոմս գնի, ու վսյո, մենք էլ չենք կարա վարկ վերցնենք ոչ մի տեղից, տենց? ա դուրս գալիս
4. armdkny10:15 - 14 April, 2014
Kristine, Azerbaijan is not financing Teghut. 39% of VTB stock is publicly traded. SOFAZ owns 3% of VTB's outstanding shares. You and I can buy these shares on the open market. Does that mean we are financing Teghut? No it does not. As a shareholder in any publicly traded company, the holder receives dividends and any capital gains once they sell there shares. If you owned British Petroleum shares, does it mean that you are financing Azeri oil production? No, it does not. This is how the capital markets work and the world we live in.
5. Vrej07:43 - 15 April, 2014
@Commentator #4 - What a bunch of mumbo-jumbo. Have you ever heard of the concept of responsible corporate investment? Of course not. The simple answer to the question you posed is YES. If one invests in BP then then you are DIRECTLY financing Azeri Oil Production. No matter the % of the total shares you have purchased. The investor has a choice! Have you ever heard about municipalities disinvesting their shares in pension funds that once were invested in companies in South Africa and thus abetting the apartheid regime? Probably not.
6. armdkny11:05 - 15 April, 2014
Vrej, If I buy shares of BP in the open market, I am not buying those shares from BP!! I am buying shares "of" BP from another counter party. These are publicly traded shares. In the case of SOFAZ, they bought there stake directly from VTB when VTB had there secondary offering in May of 2013. In this case, yes, SOFAZ funded VTB directly but the Teghut deal was structured and financed in 2011, as Kristine wrote. The only way an investor finances a company directly is through a stock or bond offering or if the company decides to sell its existing shares(capital raise). Take a course on Wall Street 101.
7. Vrej22:57 - 15 April, 2014
More mumbo-jumbo in an attempt to circumvent responsible investing. Sounds like an investment banker with dirty laundry to hide. Ask yourself this - would someone concerned about the environment actually buy shares in BP or any other similar corporation? You sound somewhat delusional. Wouldn't that person divest any shares they had in Exxon Mobil after the 1989 Exxon Valdez oil spill in Alaska?
8. armdkny13:21 - 17 April, 2014
What does socially responsible investing have to do with this article? Do you know anybody who buys shares in "responsible" companies? You probably don't and if you do then they are probably investing in Green Energy or Health Foods. If the author wants to dig deeper, she should find out which foreign investors purchased VTB's initial 10% offering in 2011 since the Teghut deal was probably structured and financed with a portion of that money. I believe VTB received $3B from that offering. As for me, you have no idea who I am, where i live and what my business was and is today. Sounds to me like you are playing arm-chair QB from Glendale.
Leave a comment
Thank you for your comment. Your comment must be confirmed by the administration.

Latest news

All news

Archive