Overview of the Trust Bank Case and AVB Bank Restructuring
Trust Bank faced a significant compensation claim after a complex restructuring process involving AvtoVAZbank (AVB Bank). A Moscow Arbitration Court order established a compensation amount of about 113.1 billion rubles, to be paid jointly and severally by the former controlling holders of AVB Bank. Among these defendants are the Ananiev brothers, Alexei and Dmitry, who were linked to Promsvyazbank in the initial stages of the restructuring. DEA News, citing a familiar source with the proceedings, notes these details.
The Trust’s lawsuit seeks joint and several compensation for losses tied to the restructuring of AVB Bank, which began in April 2021 and targeted the former control holders of the credit institution. Promsvyazbank had carried out the first restructuring steps, and beyond the Ananievs, the defendants include Nikolai Taran, the former co-owner of AVB Bank, and Oleg Vdovin, who served as AVB Bank president from February 2016 to August 2018. According to the source, the court on Wednesday dismissed the allegations against Vdovin.
AVB Bank was founded in 1988 and played a pivotal role in supporting the AvtoVAZ automobile enterprise. In July 2015, the Central Bank of the Russian Federation transferred AVB Bank to Promsvyazbank for restructuring. However, by December 2017, PSB itself needed restructuring and eventually moved to Trust Bank as part of the broader process.
Since April 2018, the Bank of Russia has provided AVB Bank with financial backing in the form of deposits totaling 352.5 billion rubles, along with additional capitalization of about 350 million rubles. These funds served as financial assistance during the bank’s rehabilitation phase.
The claim amount follows a formula under bankruptcy law, equating the losses to the income the Central Bank would have earned if the reorganized funds had been available at the key rate rather than at zero. Financing for this action comes through the Banking Sector Consolidation Fund. The lawsuit has been in third-party status since August 2022, requested by the Central Bank, and the proceedings were conducted behind closed doors.
In the post-realignment landscape, Rost Bank joined the effort in the summer of 2018, leading to the creation of a non-core assets bank (BNA). The BNA consolidated the assets deemed non-core and exposed by several rehabilitated banks so that their value could be realized more efficiently. In March 2019, Trust announced the completion of an asset acquisition from AVB Bank for 340 billion rubles, marking a major step in consolidating the asset portfolios under BNA. When the effects of previous asset transfers from the Otkritie group are accounted for, including assets from Binbank, Trust, and Bank Growth, the combined asset base reached approximately 2 trillion rubles at that time, reflecting the scale of the consolidation and its implications for the financial sector.
Notes from the involved parties indicate a broad strategy of consolidating troubled assets into a single vehicle to stabilize the sector, with the Trust Bank restructuring playing a central role in that effort. The court’s ruling on liabilities, the involvement of major financial players, and the overall impact on the Q2-Q3 2018 to 2019 period illustrate how state institutions and private entities navigated a period of financial stress and consolidation in the Russian banking sector. The case continues to be a focal point for discussions about accountability, risk management, and the long-term outcomes of bank restructurings that affect millions of clients, investors, and stakeholders across Russia and beyond.