The National Bank of Ukraine Proposes to Impose Sanctions against Ukrainian Banks with Russian State Capital
23.03.2017 18:16 | National bank of Ukraine
In pursuance of the
decision of the National Security and Defense Council of Ukraine, the National
Bank of Ukraine develops a mechanism to enact sanctions against some banks,
including.
- SBERBANK PJSC;
- VTB BANK PJSC;
- PROMINVESTBANK
PJSC;
- BM BANK PJSC; and
- VS BANK PJSC.
“The sanctions aim
to protect the interests of these banks’ customers and prevent the outflow of
capital from Ukraine. These sanctions will prevent banks targeted by sanctions from
taking funds out of Ukraine and transferring them to parent banks based in the
Russian Federation,” underlined First NBU Deputy Governor Mr
Yakiv Smolii.
Sanctions in the
form of a ban prohibiting funds transfers to banks’ related parties to prevent capital
outflows abroad have been imposed pursuant to paragraph 25 of part 1 of Article
4 of the Law of Ukraine On Sanctions.
The sanctions
prohibit any financial transactions involving the transfer of funds to banks’
related parties, particularly parent banks, including a ban on:
- asset-related transactions that are carried
out directly or indirectly (the
provision of interbank loans, deposits,
subordinated debt, securities purchases, depositing funds in correspondent
accounts, etc.);
- dividend and interest payments,
repayment of interbank loans/deposits, withdrawal of funds from correspondent
accounts, and repayment of subordinated debt;
- profit distribution; and
- allocation of capital.
However,
the aforementioned sanctions will not apply to settlements carried out by banks
targeted by sanctions when these transactions are initiated by
the banks’ customers provided that the execution of these settlements is
not in violation of the ban.
Currently, the banks
targeted by sanctions are liquid and have sufficient funds to meet their
obligations to depositors.
Since 2014, the banks
targeted by sanctions have been placed under the curatorship
of the NBU.
For reference
- Sberbank of Russia PJSC (Russian Federation) has a subsidiary,
SBERBANK PJSC, operating in Ukraine;
- Sberbank Europe AG (Austria) has a subsidiary, VS BANK PJSC;