NSDC supports extension of sanctions against "Russian banks"

The National Security and Defense Council of Ukraine supported proposals of the National Bank of Ukraine to extend the effect of personal special economic and other restrictive measures (sanctions) against banks with Russian capital.

Previously introduced restrictive measures were due to expire in March 2018, the press service of the National Security and Defense Council told UNIAN.

It was earlier reported that the National Bank of Ukraine proposed to extend sanctions imposed against Ukrainian subsidiaries of Russian state-owned banks for another year.

Read alsoUkraine's central bank set to prolong sanctions against Russian banks' subsidiariesOn March 16, 2017, President Petro Poroshenko enacted by his decree the decision of the National Security and Defense Council imposing sanctions on Ukrainian subsidiaries of Russian state-owned banks, including Sberbank, VEs Bank, Prominvestbank, VTB Bank and BM Bank, for a period of 12 months.

Sanctions include a ban on the withdrawal of capital in favor of parent structures, but do not affect payments through these banks made to Ukrainians, and do not interfere with the capitalization and sale of financial institutions.

The regulator expected that these banks would be acquired by a new investor or they would gradually shut down their operations in Ukraine.

In December 2017, Sberbank Europe AG (a subsidiary of Sberbank of Russia) completed a deal to sell a controlling stake (99.9230%) of Ukrainian VS Bank to the TAS Group, owned by Sergiy Tigipko. The remaining structures remain in the ownership of Russian state-owned banks.