The Kremlin has promised to take steps to protect Russian banks in Ukraine

The authorities of Russia “concerned” over the situation around the “daughters” of Russian banks in Ukraine, and if necessary will speak in their defense, said the press Secretary of the President Dmitry Peskov.

“We are very closely monitoring the situation and will, if necessary, to support and protect by all available and legitimate means the interests of our financial institutions”, — assured Sands (quoted by “RIA Novosti”).

Press Secretary of the President of Russia noted that the actions of the Ukrainian authorities, contrary to international law and lead to greater tension, whereby there is the “frightening” tendency to further degradation of economy of Ukraine.

“Economically, Ukraine is no longer a foreign, international investors a reliable and predictable place to invest money and where you can attend as a subject of economic life”, — said Peskov.

He also expressed understanding of the concern of the leaders of Russian banks, “which are not lucky enough to be present in economic life of Ukraine” and said that they will be able to convey their concerns to the President during today’s visit by Russian President Vladimir Putin plenary session of the Russian Union of Industrialists and entrepreneurs (RSPP).

“If either in the open or in a closed format the topic will be raised, I think certainly the President will be prepared to discuss it and to listen to the concerns of our bankers,” — said Peskov.

Problems of Russian banks in Ukraine

Yesterday, 15 March, the security Council and defense of Ukraine on the proposal of the President of the country Petro Poroshenko took the decision to complete the termination of cargo transportation official with uncontrolled Kiev territories of the breakaway Donetsk and Lugansk national republics, and also instructed the National Bank of Ukraine (NBU) 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 first Deputy head of the NBU Jacob Smoliy said that the proposed sanctions to be imposed on the Ukrainian subsidiaries of Sberbank, Vnesheconombank and VTB, which will prohibit any transactions in favor of the parent banks, including interbank loans, deposits, purchase of securities, payment of dividends and other operations.

Commenting on the decision of the Ukrainian authorities, the head of Bank VTB Andrey Kostin called 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.

“This, apparently, want the Ukrainian government, but I think that it is their decision wrong,” said the head of VTB.

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, 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.