Published by Global Banking and Finance Review
Posted on December 1, 2025
By Elena Fabrichnaya and Gleb Bryanski
MOSCOW, Dec 1 (Reuters) - Russian companies are eyeing expansion opportunities in the countries of the Global South and still have global ambitions despite Western sanctions, Andrei Kostin, the CEO of Russia's second-largest bank, VTB, told Reuters.
The United States in October imposed sanctions on Russia's biggest oil companies, Rosneft and Lukoil, forcing the latter to sell its overseas assets, which extract about 0.5% of global oil, at a discount.
"Interest in expansion remains, with the focus now shifted towards the Global South. I know that many colleagues are currently considering raw material processing in China and other countries," Kostin said in an interview conducted on Friday.
VTB participated in some of the oil companies' foreign acquisitions, including a 2017 deal to acquire India's Essar Oil, now called Nayara Energy, by a consortium led by Rosneft. In this deal VTB acted as an adviser to Essar Group, the seller.
"It (Nayara Energy) is targeting an exclusively domestic market. Export is not planned at all, everything produced is consumed within India. Sanctions were imposed on them earlier, but everything is functioning," Kostin said.
Kostin said that the oil firms should follow the example of VTB, which had successful businesses in the U.S. and Europe but changed focus to other markets after it was hit with Western sanctions.
"I think the same will happen with Rosneft and Lukoil. Opportunities will arise. Moreover, any restrictions that lead to an increase in oil prices are benefiting exporters," Kostin said, adding that Russian oil will always be in demand.
Kostin will be part of the delegation that will accompany President Vladimir Putin on a two-day visit to India on December 4-5. India has been the biggest buyer of discounted Russian oil but supplies are expected to fall due to sanctions.
"How India will act in the future remains to be seen. It is advantageous for India to buy Russian oil, and it will be difficult to give it up," Kostin said. He said U.S. oil sanctions would not "kill" Russian oil companies.
Kostin acknowledged that Indian banks were wary of doing transactions with Russian firms while its was difficult to settle trade in national currencies because India's exports to Russia were too small, compared to its imports of Russian oil.
VTB, which has an office in New Delhi, also plans to open an office in Mumbai, Kostin said, adding that India has the potential to increase exports to Russia, especially of machinery and pharmaceutical products.
(Writing by Gleb Bryanski;Editing by Andrew Osborn and Susan Fenton)
