Photo from minfin.com.ua BM Bank, the Ukrainian-based subsidiary of Russia&#39;s state-owned PJSC VTB bank, is ceasing banking activity through the withdrawal of its banking license in Ukraine without closure as a legal entity. A plan for phasing out banking activity has been elaborated as part of the strategy for optimization of presence on the Ukrainian market and under the requirements of the Law of Ukraine on "Simplifying Capitalization and Reorganization Procedures for Banks," the bank said on its website with reference to a decision taken by its shareholder, the Russian-based VTB Group. Read alsoNBU prolongs sanctions against Russian banks&#39; subsidiaries in Ukraine Under the plan, the bank will fully meet its obligations before clients within 180 days after the decision has been approved by the National Bank of Ukraine (NBU) and will submit a request to the regulator in September 2018 for the withdrawal of its banking license. Plans for further actions are not disclosed. As UNIAN reported earlier, the National Security and Defense Council of Ukraine supported the NBU&#39;s proposal to extend sanctions against Ukrainian-based subsidiaries of Russian state-run banks, namely Sberbank, Prominvestbank, VTB Bank, and BM Bank, for another 12 month. The sanctions include a ban on the withdrawal of capital in favor of the parent structures. However, they do not involve transactions conducted by Ukrainian citizens through these banks. The sanctions do not hinder additional capitalization and sale of the subsidiaries. VTB&#39;s website says that the bank&#39;s major stockholder is the Russian state represented by the Federal Agency for State Property Management, which owns 60.9% of VTB shares, according to data as of December 31, 2017.