Bill on nationalisation of banks of sanctioned owners registered in the Verkhovna Rada
The text of the bill and supporting documents are not yet available on the Verkhovna Rada website
MPs (Danylo Hetmantsev, Yaroslav Zhelezniak, Oleksiy Leonov, and others) have submitted to the Parliament Bill No. 9107 on improving the procedure for withdrawal of a bank from the market under martial law. The text and supporting documents are not yet available on the VRU website.
The bill is aimed at simplifying the procedure for nationalisation of banks owned by persons under sanctions. Earlier, both MPs and the media reported that the bill was designed to nationalise Sense Bank (formerly Alfa-Bank), which is owned by sanctioned russian oligarchs Mikhail Fridman, Petr Aven, and Andrey Kosogov.
The day before, MP and Chairman of the Committee on Finance Danylo Hetmantsev stated that the bill proposed to give the NBU the authority to prohibit sanctioned persons (individuals and/or legal entities) from acquiring or increasing a significant stake in a bank. Besides, the NBU will have the right to revoke a banking licence and liquidate a bank (which is not considered systemically important).
Earlier, the Ekonomichna Pravda media outlet, citing the text of the bill, reported that the NBU would be obliged to declare Sense Bank insolvent and propose to the government to nationalise the financial institution. If the Cabinet of Ministers agrees to the nationalisation, it will be carried out under a simplified procedure – the bank's shares will be sold to the government for 1 UAH.
To recap: On 28 October last year, Law 2643-IX came into force, simplifying the nationalisation of systemically important banks. According to the document, during martial law, the state can buy a bank for 1 UAH, regardless of the actual size of its capital and without additional capitalisation if the institution is classified as insolvent. At the time, MPs noted that the law had been adopted specifically to nationalise Alfa-Bank. At the end of last year, however, its liquidity situation began to improve. Accordingly, the state could not apply the law to the institution.
If you have read this article to the end, we hope that means it was useful for you.
We work to ensure that our journalistic and analytical work is of high quality, and we strive to perform it as competently as possible. This also requires financial independence. Support us for only UAH 196 per month.
Become a Mind subscriber for just USD 5 per month and support the development of independent business journalism!
You can unsubscribe at any time in your LIQPAY account or by sending us an email: [email protected]
