NOVO-OGARYOVO, September 22. /ITAR-TASS/. VTB Bank, Russia’s second largest bank by assets, has lost 26 billion rubles ($670 million) in Ukraine since the start of the year and may see its losses double by the end of 2014, VTB CEO Andrei Kostin said on Monday.

“In general, the political situation and the war in Ukraine have sharply loosened the payment discipline,” Kostin said at a meeting with Russian President Vladimir Putin.

VTB Bank is today recovering only a half of loans it has issued, the banker said.

“Our losses have amounted to 26 billion rubles and I believe they will double by the end of the year,” Kostin said.