NBU allows Russian-controlled BM Bank to cease banking activity

The National Bank of Ukraine (NBU) has agreed on a plan for phasing out banking operations by BM Bank, the Ukrainian-based subsidiary of Russia's state-owned PJSC VTB bank.

The relevant decision was taken on April 3, following the BM Bank shareholders' decision of March 19 to terminate banking operations, according to the NBU website.

In turn, BM Bank reported on early termination of its obligations and offered their clients to contact its branch located on 37/122, Tatas Shevchenko Boulevard in Kyiv, to receive their funds and close accounts, according to the BM Bank website.

Read alsoShareholder of Russian-controlled BM Bank decides to withdraw banking license in UkraineIn the absence of a depositor or other creditor within 30 calendar days, the bank, under the legislation of Ukraine, will transfer funds to a Kyiv City Notary District-based notary's deposit.

As UNIAN reported earlier, the National Security and Defense Council of Ukraine supported the NBU'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 months.

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.