REUTERS
The liquidation procedure will last two years, until December 18, 2020.
The Deposit Guarantee Fund (DGF) of Ukraine, based on the decision by the National Bank of Ukraine (NBU), has launched the procedure to liquidate Kremlin-run lender VTB's local subsidiary, VTB Bank.
The procedure will last two years, until December 18, 2020, inclusively, according to the DGF's website.
Read alsoNational Bank recognizes Russian VTB's Ukrainian subsidiary insolvent
The Fund recalled that creditors' claims are accepted within 30 days from the date the liquidation announcement was published in the Ukrainian parliament's official newspaper "Holos Ukrainy."
Oleksandr Shevchenko was appointed liquidator of the bank, the report said.
According to The Financial Times, Ukraine's deposit insurance agency will pay out UAH 943 million ($33.5 million) to depositors, almost all of whom will be compensated in full, the NBU said.
VTB claimed that Ukraine had "paralyzed" its bank through rulings that essentially made it impossible to operate or save its lossmaking subsidiary despite three recapitalizations through interbank loans since 2014.
Kyiv introduced sanctions against Russian state banks last year after the Kremlin required them to recognize passports issued by two Moscow-backed self-proclaimed republics in eastern Ukraine.
What is more, VTB in November 2018 said it planned to sue Ukrainian President Petro Poroshenko to recover the acquisition costs for its Ukrainian bank, which it had bought from Poroshenko for $70 million in 2006 before he became president.
UNIAN memo. VTB Bank had been operating in Ukraine since 1992. It was among the 20 largest banks in terms of assets.
In early November, VTB Bank, experiencing liquidity problems, announced the availability of the necessary resources and managerial experience to continue its operation and stabilize the situation.
The Deposit Guarantee Fund on November 28 introduced temporary administration at VTB Bank after the National Bank had designated the bank as insolvent.