Russia's State-Controlled VTB Bank Gets Kremlin Bailout Funds

VTB is almost 61 percent state-owned.

Russia's state-controlled VTB bank has received the first tranche of a $2.6 billion bailout from the Russian government.

VTB, Russia's second-largest lender, made the announcement on December 30, saying it had received $1.8 billion and expected the rest by the end the first quarter of 2015.

The money is being provided from Russia's National Welfare Fund, where the government accumulated profits from energy sales when global oil prices were high.

VTB has been hit by Western sanctions, imposed against Russia because of Moscow's actions in Ukraine.

The sanctions bar VTB and other Russian banks from getting equity or debt financing from Western institutions.

VTB, which is almost 61 percent state-owned, said in a statement that the bailout funds will be used to finance "sustainable infrastructure projects on the list approved by the Russian government."

Based on reporting by Interfax, ITAR-TASS, and "The Wall Street Journal"