Ukraine Nationalizes local branches of Russian Banks

World » UKRAINE | May 13, 2022, Friday // 10:28
Bulgaria: Ukraine Nationalizes local branches of Russian Banks @Wikimedia Commons

The National Security and Defense Council of Ukraine has decided to nationalize the corporate rights of the Ukrainian subsidiaries of the Russian Sberbank and Vnesheconombank, the Ukrainian information site Gordonua reported.

These are the International Reserve Bank registered in Ukraine, 100 percent of the authorized capital of which belongs to Sberbank and Prominvestbank 99.8 percent of whose shares belong to the Russian state company Vnesheconombank.

In addition to corporate rights, Ukraine will forcibly withdraw financial assets, i.e. the right to borrow, from Vnesheconombavk to Prominvestbank and from Sberbank to the International Reserve Bank and from the two subsidiaries of Russian banks to legal entities.

The decision also provides for the withdrawal of such financial assets as funds in savings and correspondent accounts, domestic government bonds, certificates of deposit of the National Bank of Ukraine. All funds will be withdrawn from the International Reserve Bank, with the exception of 3 billion Ukrainian hryvnias, which will be used to guarantee deposits of depositors. (1 hryvnia = 0.64 Bulgarian levs).

According to annexes to the decision, Ukraine is depriving the International Reserve Bank of the right to claim a debt of about 4.9 billion hryvnias to Donetsk Railways, including interest.

517 million hryvnias were also nationalized from the debt of Elektrotyazhmash (Электротяжмаш), the state company Artem in the amount of 205 million hryvnias and the debt of the Zorya-Mashproekt enterprise in the amount of 2.3 billion hryvnias. The amount of the debt is indicated without taking into account the interest that will be determined at the time of the transfer of assets.

The debt of the Ukrainian railways in the amount of 6.7 billion hryvnias with interest has been withdrawn by Prominvestbank.

In addition, the right of Sberbank to demand debts to them of their Ukrainian subsidiaries in the amount of 14.9 billion hryvnias and 0.9 billion hryvnias has been nationalized. This means that the Ukrainian subsidiaries of Russian banks will not return anything to the parent structure.

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