The president of Ukraine, Petro Poroshenko, has signed off on sanctions decided by the Ukrainian National Security and Defense Council (the ‘NSDC’) against five Ukrainian banks underwritten with Russian state capital operating in the country. The banks are Sberbank PJSC; VS Bank PJSC; Prominvestbank PJSC; VTB Bank PJSC and BM Bank PJSC.
In a statement released on 15 March, Yakiv Smolii, the first deputy head of the National Bank of the Ukraine, said:
‘The sanctions aim to protect the interests of these banks’ customers and prevent the outflow of capital from Ukraine. These sanctions will prevent Ukrainian banks with Russian state capital to take funds out of Ukraine and transfer them to parent banks based in the Russian Federation.’
The sanctions prohibit any financial transactions involving the transfer of funds to affiliated entities, particularly parent banks. The ban therefore covers asset-related transactions, dividend and interest payments, profit distribution and allocation of capital.
The sanctions are imposed for the period of one year.
The statement from the National Bank of the Ukraine can be found here: