Ukraine extends sanctions against subsidiaries of Russian banks

As the press service of the regulatory body reported, the National Bank of Ukraine has decided to extend sanctions against Ukrainian subsidiaries of Russian state-owned banks.

The National Bank extended sanctions in order to put into effect the decision of the National Security and Defense Council on March 1st.

Earlier, President Petro Poroshenko emphasized that sanctions towards banks with Russian capital are effective and should be extended.

On March 23, 2017, Ukraine imposed sanctions against subsidiaries of Russian state-owned banks which work in Ukraine, including Sberbank of Russia (in Ukraine) and VTB, BM Bank (VTB's subsidiary), Prominvestbank (Vnesheconombank's subsidiary), and VS Bank (Sberbank’s subsidiary).

Sanctions against the subsidiaries of Russian state-banks prohibit the withdrawal of capital in favor of the parent structures, but it does not affect the transactions through these banks for Ukrainians and does not interfere with recapitalization and sale of banks.

The regulator expected that these banks would acquire a new investor or they would gradually reduce their activities in Ukraine.

  Sanctions against Russian banks, Russia, Ukraine