JSC VTBBank is looking to move its European hub out of London followingthe U.K.'s decision to leave the EU, the FinancialTimes reported Oct. 11, citing the bank's deputy chairman and CFO, HerbertMoos.

The Russian bank is scaling down plans for its London officeand is looking at potential alternative locations for its Europeanheadquarters, including Frankfurt, Paris and Vienna, with a decision to be madelater in 2016.

Factors the bank is considering include regulation, talentavailability and fiscal policy, Moos said. VTB will maintain London as an"important presence."

Moos said the ECB would likely not allow it to have critical functionsperformed outside the EU. VTB has several hundred employees in its Londonoffice, where it performs some centralized functions such as global anti-moneylaundering and compliance units, the FTreported.

U.S. and EU sanctions on Russia have led to far lessborrowing of dollars by large Russian companies, which has led to VTB's foreignexchange reserves growing significantly. The bank is converting excess cashinto rubles.

Moos said the sanctions have led VTB to focus more on Asia.It is expanding in India, China and Vietnam.