The authorities of Ukraine ordered to prepare sanctions against Russian banks

The national Bank (NBU) and the security Service of Ukraine (SBU) was instructed to perform the activities of banks, in whose capital is the state’s share of Russia, said the press service of the Council of national security and defense Council (NSDC). During the day should be proposed, in particular concerning the introduction of such banks against the sanctions, the report says.

On 7 March, Sberbank of Russia said that all the branches of credit organisations are ready to customer service for passports of DNR and LNR. In response, the head of the MIA of Ukraine Arsen Avakov called on the NBU to initiate the imposition of sanctions against Sberbank.

Russian banks in Ukraine

In late January, the head of the National Bank of Ukraine Valeria Gontareva said in an interview with “New time” that the number of Russian banks in the Ukrainian market decreased “over the past few years” from 15 to 8%. According to Gontareva, the problems of banks with Russian capital appeared due to the fact that they actively lent Donetsk and Lugansk regions.

Currently in Ukraine there are seven banks with Russian capital two Bank Sberbank (“Sberbank Ukraine” and PJSC “Vs Bank”), two of the VTB group (VTB Bank and BM Bank), HVB Ukraine (controlled by Vnesheconombank), alpha Bank (enters in “the alpha-Groups”) and the Bank Forward (shareholder is “Russian standard”).
Five of them — “Sberbank Ukraine”, VTB Bank, BM Bank, Prominvestbank, Alfa-Bank has reduced its assets, evidenced by reporting banks for the third quarter of 2016, according to IFRS. In particular, the savings Bank occupies in the Ukrainian banking system the fourth place in terms of assets (according to the website, has reduced them by nearly 9% from 51.8 billion to 47.2 billion. Alfa-Bank, occupying the fifth place, by 2.8% from 42.4 billion to 41.2 billion hryvnia. BM-Bank — 6.3% — from 3.2 billion to 3 billion. VTB Bank — by 19.1% — from 25.7 billion to 20.6 billion hryvnia.

The share of funds of natural persons in the banks with Russian capital decreased from 9.3% in early 2014 to 5.5% by 2016, the share of legal entities — from 8.3 to 3.3 percent, noted previously, the regulator.

On 10 March, the regulator has promised to initiate sanctions against working in the country banks with Russian capital, if confirmed information about the service their citizens with passports of the breakaway Donetsk and Lugansk national republics.