The national Bank of Ukraine pursuant to the decision of the Council of national security and defense Council (NSDC) offers to impose sanctions against Ukrainian “daughters” Russian banks. As stated by the first Deputy Governor Yakov Smoliy, it is proposed to introduce sanctions against Sberbank, VTB, BM-Bank, Prominvestbank and VS Bank.
Among the sanctions — the ban on banks with Russian capital to withdraw funds outside the country. “With the aim of preserving financial stability in the country, run by Ukrainian banks with Russian state capital obligations to customers [Bank] proposes to apply sanctions in the form of a warning of withdrawal of capital outside Ukraine,” — said resin.
Smoliy said that the sanctions would “prohibit any transactions in favor of the parent banks is interbank loans, deposits, purchase of securities, prohibition of dividend payments and other transactions.”
The Chairman of the national Bank Ekaterina Rozhkova said that the sanctions will not affect the clients — physical and legal persons that are maintained in these banks. “They will not stop the settlements between the counterparties are to these customers. Banks will continue to operate in the legislative field of Ukraine. We hope that the potential withdrawal of these banks from the market will be implemented in a civilized way — either through sale or through the gradual implementation of obligations to clients”, — said the Deputy Chairman of the NBU.
She stressed that the proposal of the national Bank for sanctions linked to Putin’s decree on passports LC and the DNI. “This is not a reason for imposing sanctions, because our objective was the preservation of financial stability, liquidity in the banking market. To preserve liquidity, we are introducing these sanctions,” she said.
According to Rozhkova, the Ukrainian “daughter” of Russian banks with state participation have obligations to physical persons and legal entities of Ukraine 36 billion hryvnia ($1.4 billion). These obligations are secured credit portfolio by 150 billion hryvnias ($5.6 billion). 21 billion hryvnia — that the obligations of banks to physical persons, and 15 billion before legal entities.
According to a top Manager of one of the state banks, in respect of which it is expected to impose these sanctions, in fact, they only state the current situation. “Many of these haven’t worked — no one was paying dividends, the interbank market was down,” he said. With the estimates, and analysts agree. “In my opinion, the effect from the sanctions will not be very noticeable. To the Ukrainian “daughters” effect and is immaterial. The head of Russian structures, it is more noticeable, but still not very significant. The impairment of the Ukrainian assets created by parent companies in Russia for a long time, dividend, subject to the condition of the business of Russian banks in Ukraine, and so not expected, you can roll over the interbank market, the question is — how long will the sanctions and whether they will be tightened”, — says the analyst of rating Agency ACRES Kirill Lukashuk.
Of course, the most critical point — the ban on the return of the interbank market, recognize the bankers and analysts interviewed. “This article of the Russian Sberbank, VTB and VEB will have to trenerprofi. Of course, this is not their main expense reserves, but noticeable”, — said the Deputy Director on Bank ratings S&P Sergey Voronenko. According to his estimates, made on the basis of available statements of the Ukrainian subsidiaries of Russian state-owned banks according to IFRS, at the end of September 2016, the Ukrainian “daughter” had the Russian Sberbank and Vnesheconombank on the interbank market of 25 billion USD (at current exchange rate is 54.8 bn) and 8 billion hryvnia (RUB 17.5 billion), respectively, the Ukrainian debt to the Russian VTB amounted to 13 billion UAH (28.5 billion RUB) (the latest publicly available data is only from the statements of Ukrainian VTB at the end of 2015).
However, experts say that and completely ignore the effect of these sanctions would be wrong. They recall that such a background usually entails the outflow of deposits. “In any case, to fully evaluate the effect of sanctions, it takes several days for the analysis of their language, to understand exactly what the cash flows fall within the perimeter of the sanctions,” says Voronenko. In General, S&P evaluated at the beginning of the conflict with Ukraine the maximum possible volume of the Ukrainian assets of all Russian banks (including those who lend to Ukrainian companies from Russia directly) to $23 billion.
VTB, VEB at the time of publication had not responded to the request . The representative of Sberbank refused to comment on the situation until then, until you have taken a formal decision. “I hope that when the final decision-making power of the country will manifest wisdom and foresight,” — said the representative of the savings Bank.
Problems of Russian banks in Ukraine
March 7 the national Bank of Ukraine has declared, that will demand from the national security Council to impose sanctions against Ukrainian “daughter” of Sberbank. This statement was made after Sberbank of Russia started accepting passports issued in the breakaway republics of DND and LNR. The “daughter” of the savings Bank, working in Ukraine, said that “not served and will not serve” clients on such documents.
The national Bank of Ukraine and the SBU was instructed to perform the activities of banks, in whose capital is the state’s share of Russia, on Tuesday, March 14. During the day, the NBU and SBU had to submit their proposals for sanctions against such credit institutions.
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 share 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.
Now 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 Forward the Bank (shareholder of the Bank “Russian standard”).
Five of them — “Sberbank Ukraine”, VTB Bank, BM Bank, Prominvestbank, Alfa-Bank has reduced its assets, shows the report 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 Banker.ua), 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.