Russia’s VTB bank suffered losses of over $7 billion in 2022 but claims it is now optimistic about recovering in 2023, according to reports.

Reuters reported that VTB, Russia’s second largest bank, is buoyed by its acquisition of rival bank Otkritie and a profitable start to the year.

The news agency previously reported that Andrei Kostin, VTB chief executive blamed its dire 2022 performance “squarely on Western sanctions” against Russia’s financial sector due to the nation’s invasion of Ukraine.

Dmitry Pyanov, deputy board president and chief financial officer of VTB reportedly told Russian reporters: "The stress has passed, the tears have been shed,” adding that the trajectory of the profit recovery would allow VTB to repeat 2021 in terms of record profits which totalled almost $4 billion.

Fellow Russian bank MTS was recently dealt a major blow after the United Arab Emirates elected to withdraw its licence to operate in the country.

UAE’s central bank said the decision was reached after considering the available options regarding the new status of the MTS Bank, given the sanctions risks associated with it.

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