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The Pension Fund of Ukraine (PFU) will terminate pension payments to Ukrainian citizens through Ukrainian subsidiaries of Russian state-owned banks starting April 1, the PFU told an UNIAN correspondent.
Said services will automatically be transferred to Ukrposhta branch offices until citizens choose another bank to manage their pension accounts, the reports said.
The decision is related to the decree issued by Ukrainian President and the decision of the National Security and Defense Council (NSDC) of March 15, which forbid any placement of state funds (including pensions) in subsidiaries of Russian state-owned banks, PFU said.
Read alsoReuters: Russia's Sberbank looking at quick exit from UkraineAs UNIAN reported earlier, on March 16, President of Ukraine Petro Poroshenko signed a decree bringing into effect the NSDC decision on imposing sanctions for a one-year period in respect of subsidiaries of Russian state-owned banks, namely Sberbank, Prominvestbank, VTB Bank, BM Bank, and VS Bank.
Read alsoPoroshenko greenlights sanctions against Russian banksThe sanctions prohibit any financial transactions involving the transfer of funds to parent banks, including the provision and repayment of loans, the placement of funds in correspondent accounts, the payment of interest and dividends, the return of subordinated debt, the distribution of profits and capital. However, they do not affect the payments through these banks for Ukrainians and not prevent additional capitalization and sale of the financial institutions.