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There are four Russian state-owned banks' subsidiaries in Ukraine: Sberbank, Prominvestbank, VTB Bank and BM Bank.
The National Bank of Ukraine (NBU) has allowed sanctioned Russian state-owned banks to additionally capitalize their subsidiaries in Ukraine, namely Sberbank, Prominvestbank, VTB Bank and BM Bank.
The regulator brought its requirements in line with the decision of the National Security and Defense Council of Ukraine (NSDC) of May 2 regarding the updated list of sanctions imposed under the presidential decree of May 14, the NBU said in a statement, referring to Resolution No. 55.
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"This will avoid the recognition of sanctioned [Russia's] Ukrainian-based subsidiaries insolvent due to insufficiency of their capital, since such a situation may lead to additional burden on Ukraine's Deposit Guarantee Fund and the national budget," the report says.
In addition, the National Bank has extended the mechanism for implementing the NSDC's sanctions by banks, non-banking institutions, the national postal operator and payment organizations.
UNIAN memo. There are four Russian state-owned banks' subsidiaries in Ukraine: Sberbank, Prominvestbank, VTB Bank and BM Bank.
According to the decision of the National Security and Defense Council of Ukraine, sanctions against the financial institutions that ban the withdrawal of capital in favor of the parent structures have been in effect since March 2017.
An updated sanctions list, including 1,748 individuals and 756 legal entities in accordance with the NSDC's decision, was published on the presidential website on May 24. Sanctions against Russian parent structures of the said banks remained unchanged and were extended for three years.