NBU prolongs sanctions against Russian banks' subsidiaries in Ukraine

The National Bank of Ukraine has prolonged sanctions against Sberbank, Prominvestbank, VTB Bank, and BM Bank, in line with the decision of the National Security and Defense Council of Ukraine "On the application of personal special economic and other restrictive measures (sanctions)" of March 1, 2018.

According to a report posted on the NBU website, the relevant changes were approved by the decision of the NBU Board of March 15, 2018, which comes into force on March 16.

"It is about barring these banks from carrying out any financial transactions involving the transfer of funds or capital withdrawal outside Ukraine in favor of persons affiliated with these banks," the NBU said.

Read alsoSmolii tapped to head National Bank of UkraineThe regulator has noted that the sanctions are aimed at protecting the interests of banks' clients. They also make it impossible for these banks to withdraw capital from Ukraine in favor of the parent banks and other affiliated persons.

As UNIAN reported earlier, on March 6, 2018, President of Ukraine Petro Poroshenko enforced the decision of the National Security and Defense Council of Ukraine 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.