MOSCOW (Reuters) - VTB VTBR.MM, Russia's second biggest bank, said on Monday it had sold its New York-based business, VTB Capital Inc., to its executives, citing geopolitics as one of the reasons for the deal.

The business, now called Xtellus Capital Partners, will provide brokerage services to VTB, allowing it to continue providing clients with products on the equity and fixed income markets in the United States.

“Given the current geopolitical situation such a change ... is the most appropriate way to continue servicing our Russian and global clients,” VTB said. Following the deal, which closed on Aug 31, there will be no direct VTB’s presence in the United States.