Romanov to branch out

HE is the Lithuanian business tycoon whose wealth has bankrolled a resurgence in the fortunes of Hearts Football Club.

Now Jambos owner Vladimir Romanov is bringing another arm of his business empire to the Capital.

An office of the Lithuanian bank Ukio Bankas, which helped make Mr Romanov rich and is featured on the Hearts team shirt, is set to open in Edinburgh.

Mr Romanov is in negotiations with Edinburgh property companies, with sources close to the discussions claiming agreement on a specific site could be reached by the end of next week.

The move would give Mr Romanov his first foothold in the financial market of western Europe.

The bank is the financial arm of Romanov’s parent company, Ukio Bankas Investment Group, which has his son Roman, the Hearts chairman, as a senior member of its board of directors.

The move was welcomed today by business leaders and Hearts fans as the millionaire extends his financial ties in the city.

A spokesman for the banker said: “Mr Romanov has upped the search for premises. The synergy is right, with Hearts doing well on the football field, but there is a long and thorough process that has to be gone through to allow a bank from eastern Europe to operate in our country.
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“That process has now moved on significantly, to the stage where they are now looking at premises that will house the bank.

“Mr Romanov is hopeful that the negotiations will conclude sooner rather than later.”

The move to bring Ukio to Edinburgh will reinforce the roots Romanov has already put down in Edinburgh through his investment in Hearts.

He already owns an 80.1 per cent shareholding in the club and is seeking to redevelop the main stand at Tynecastle Stadium.

His spokesman added: “There have been people who have suggested that Mr Romanov is not in it for the long haul here but that is far from the truth. The long-term strategy was always to seek an opportunity for the banking arm of the business in Scotland.

“There are five major banking centres in Europe – Frankfurt, Madrid, London, Paris and Edinburgh. Eastern European banks can only boost their standing within the financial community by doing business with western European banks.”

Martin Laidlaw, chairman of the Hearts Supporter’s Trust, said: “This can only be a positive move and I think Hearts fans will see it that way. It was always his intention to open a bank branch in Edinburgh and it seems he is keeping to that promise. It shows that he’s here for the long haul.”

Graeme Bell, spokesman for the Edinburgh Chamber of Commerce, said: “Mr Romanov’s investment in the city, which began with Hearts, has been very welcome.

“Edinburgh is the second leading financial institution in the UK, and possibly Europe, and it’s great that he recognises that the city has become an international banking centre with great staff and conditions on offer.”

Based in the Lithuanian city of Kaunas, Ukio Bankas has been Hearts’ primary sponsor since agreeing a two-year shirt sponsorship deal in June last year.

The bank reported net profits of £2.7 million in the first nine months of 2005, which was more than three times the amount for the same period the previous year. Since the beginning of 2005, Ukio has opened 12 branches across Lithuania, however the proposed move to Edinburgh will be the company’s first foray into western Europe.

Taken from the Scotsman