Ukraine extends sanctions against subsidiaries of Russian banks
President Petro Poroshenko signed a decree on the extension of sanctions against banks that hold Russian state capital.
The decree, which put into effect the decision of the National Security and Defense Council made on March 1, is available on the website of the President.
Previously, Poroshenko said that over the past three years, the share of assets of the above-mentioned banks in the system decreased from 10.6% to 5.6%. At the same time, in 2017, the net assets of these banks decreased by one third, while the funds of individuals and legal entities in these banks decreased by 28% and 34%, respectively.
The President stressed that it is critical to preserve the funds of enterprises in these banks so they are not withdrawn outside of the country where their exit can impact the local economy.
"Their exit from the local market is a matter of time," Poroshenko said.
On March 15, 2017, President Petro Poroshenko put into effect the decision of the NSDC to impose sanctions against five Russian-owned Ukrainian banks. Sanctions were introduced for one year against PJSC Sberbank, PJSC VS Bank, PJSC "Joint Stock Commercial Industrial and Investment Bank" (Prominvestbank), PJSC VTB Bank, and PJSC BM Bank. The order provides for restrictions on the withdrawal of capital outside the country.
In the past year, Russia managed to sell only a small Lviv bank, VS Bank, which was purchased by businessman Serhiy Tihipko.
On February 21, 2018, the National Bank called for the extension of these sanctions.