Bank of Moscow files bankruptcy petition against Insurance Group
MOSCOW, April 27 - RAPSI. The Bank of Moscow filed on April 25 a bankruptcy petition against the Insurance Group company, a shareholder of the Capital Insurance Group.
The Insurance Group owns 50 percent minus one share in the Capital Insurance Group, as does VTB Bank.
The Bank of Moscow is part of VTB Bank, the second largest financial institution in Russia.
In February 2011 VTB acquired 25 percent plus one share in the insurer from the Moscow government. VTB owns the other 25 percent minus two shares through the Bank of Moscow.
Last year law enforcement agencies opened a criminal case against Dmitry Zhukevich, the former head of the Financial Assistant company, affiliated with the Bank of Moscow. Investigators found that Zhukevich had sold two of Capital Insurance Group's shares to a Cyprus-based offshore company for 2,400 rubles ($82) in 2010.
Consequently, the Moscow government and then VTB lost control over the insurer. The stock sale eventually resulted in 1.7 billion rubles ($58 million) of damage.
The Capital Insurance Group runs a holding which comprises MSK Insurance Group, the Moscow Reinsurance Association, MSK-Life and the Solidarity for Life Medical Insurance Company.