Ukraine’s decision to impose sanctions against Ukrainian “daughter” of the savings Bank (Sberbank) is “discriminatory, politically motivated and not caused by any action that violates the laws of Ukraine”, reads the incoming message of the credit organization. “We are disappointed with the decision of the Ukrainian authorities on the introduction of sanctions against Sberbank of Russia JSC (Ukraine),” — said a credit institution.
As stressed by Sberbank, sanctions against “the physical blocking of the Central office and a number of branches representatives of radical organizations, as well as repeated acts of vandalism against the property of the Bank with the connivance of law enforcement” is “undesirable” for the Ukrainian authorities to the presence of investments of the savings Bank in the country.
The credit institution addressed to the President of Ukraine Petro Poroshenko with a request “to restore law and order, to unlock the Central and other offices of the Bank and to ensure normal conditions for maintenance of banks and their clients several tens of thousands of Ukrainian legal entities and more than a million private clients — citizens of Ukraine”. The statement stressed that the Bank plans to coordinate with the National Bank for further action and hopes for the support of the regulator to restore normal operation of PJSC “Sberbank”.
Problems of Russian banks in Ukraine
Yesterday, 15 March, the Council instructed the national Bank of Ukraine and the SBU during the day to prepare proposals on the introduction of sanctions against working in Ukraine banks, in whose capital there is the share of state banks in Russia. Later, the Ukrainian regulator explained that the restrictive measures will be imposed on subsidiaries of Sberbank, VTB, BM-Bank, Prominvestbank and VS Bank. Thursday, March 16, Poroshenko has approved the introduction of sanctions for a period of one year.
The Kremlin, commenting on the introduction of these sanctions, said that he was “concerned” about the situation and if necessary will speak in defense of the “daughters” of Russian banks in Ukraine. The head of VTB Andrey Kostin called sanctions adopted by political motives and damaging the economy of the Ukraine. Costin acknowledged that work in Ukraine to Russian banks becomes more and more difficult, and, it seems, local authorities are pushing them to care.
PJSC “savings Bank” on 15 March imposed temporary limits on the issuance of cash in connection with the lock of the Central office in Kiev. March 16, “daughter” of Russian credit organizations introduced a temporary block on debit transactions on credit cards for individuals.
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.