February 14, 2011, Moscow – The Russian government has announced the closing of a deal to privatize a shareholding in VTB Bank. Egorov Puginsky Afanasiev & Partners acted as a legal advisor for the Federal Agency for Management of State Property (Russian Property Agency) in this deal.

The sale of 10% of VTB shares will allow the government to raise over RUR95 billion. This sale of shares has become the most successful equity placement in the Russian market in the post-crisis history.

The placement was preceded by numerous meetings of government and VTB officials with more than 170 foreign companies and foundations. This demonstrated that both Russian and international investors have great interest not only in VTB, one of the world’s most promising banks, but in the Russian economy as a whole that is confidently coping with repercussions of the global crisis.

Bank of America Merrill Lynch, an international investment bank, acted as an agent and financial advisor.

Experts from Egorov Puginsky Afanasiev & Partners represented the Russian Property Agency in the entire range of matters related to the preparation for, and consummation of, the deal. This included drafting an agreement between the Russian Property Agency and the agent, a share purchase agreement for the VTB Bank shareholding, ensuring approval of those agreements by all of the interested parties, and execution of all other documents required for a successful consummation of the deal.

The deal is expected to close very shortly.