Ukraine to nationalize Russian-owned Sense Bank
KYIV –‘s centralsaid it will–, one of the country’s top commercials, and put it under temporary administration on Friday.
The Nationalof(NBU) said in a statement on Thursday it decided to “withdraw from the market the systemically important”and submitted a proposal to the government on the state’s participation in the process.
The “safe” transfer will not be noticeable to clients, NBU Governor Andriy Pyshnyi told a media briefing.
Previously known as Alfa-,is‘s 10th largest in terms of assets and is on the list of systemically importants, centraldata showed.
As part of its economic response to Moscow’s large-scale invasion on Feb. 24, 2022, Kyiv has imposed sanctions on Russia and opened court cases to confiscate assets held by thestate inand businessmen close to the Kremlin.
In June, President Volodymyr Zelenskiy signed into law the legislation allowing the government to nationalizes from owners that came under sanctions due to Russia’s invasion.
In his nightly video address, Zelenskiy took note of the central‘s move, without identifyingby name.
“It is now only right that the cabinet of ministers immediately considers the relevant proposals of the centraland supports them in relation to this financial institution,” Zelenskiy said.
“In the interests of investors, for the sake of financial stability and fundamental justice.”
‘Significant risk’
The centralsaid the connections of‘s owners with Russia “pose a significant reputational risk and have a significant negative impact on the‘s activities.”
“The regulatory capital offell by 50 percent in the period from March 1, 2022, to July 1, 2023, while at the same time, it grew by about 29 percent at other systemically importants,” Pyshnyi said.
Ukrainian-born-Israeli businessman Mikhail Fridman has a 32.86-percent stake in ABH Holdings S.A., the majority owner of, whilemagnate Petr Aven holds 12.4 percent, thesaid on its website. Fridman and Aven could not be immediately reached for comment.
, with 3 million depositors, posted losses of 7 billion hryvnias ($189.75 million) in 2022, the centralsaid.
The Ukrainian financial sector and itsing system have proved remarkably resilient during nearly 17 months of the war under the centraland government’s policies and strong financial support from Kyiv’s Western partners.
Centralofficials said they discussed their plans tothewith the International Monetary Fund, the country’s key lender.
The officials said the government’s decision was expected on Friday and all steps on the‘s nationalization should be completed over the weekend.
Fridman and Aven are long-term partners in oil,ing and retail businesses and they face Western sanctions over their alleged ties to the Kremlin following Russia’s invasion of. Fridman, who was born in westernduring the Soviet-era times, cast the war inas a tragedy.
($1 = 36.8910 hryvnias)
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