Poroshenko greenlights sanctions against several Russian banks

President Petro Poroshenko has enacted the decision by the National Security and Defense Council of Ukraine, according to which annual sanctions are imposed on 5 Russian banks operating in Ukraine. This was reported by the press service of the head of state.

The decision of the National Security and Defense Council of March 15, 2017 "On the application of personal special economic and other restrictive measures (sanctions)" against several entities was adopted in accordance with Article 5 of the Law of Ukraine "On Sanctions" and taking into account the proposals of the National Bank of Ukraine.

The sanctions will be effective for a year against the following banks in Ukraine: Sberbank, VS Bank, Prominvestbank, VTB Bank, BM bank and will prevent them from disinvestment outside Ukraine in favor of related persons.

The Cabinet and the National Bank of Ukraine should monitor the efficiency of the sanctions and prevent investment of funds with them by state enterprises, institutions, and organizations in the authorized capitals of which there are corporate rights of the state, in the banks specified in the decision of the National Security and Defense Council.

However, the sanctions did not affect two more Russian banks - City Bank and Alfa-Bank. Earlier, while still discussing the sanctions, the deputy chairman of the National Bank of Ukraine, Kateryna Rozhkova, explained that these financial institutions are not banks with Russian state capital, while sanctions are imposed specifically against banks owned by the Russian Federation.

As previously reported, on March 15, the National Security and Defense Council within one day instructed the National Bank and the SBU to make proposals for sanctions against banks with Russian capital.

The National Bank of Ukraine proposed imposing sanctions against five banks with Russian capital.

Within a few days, banks with a Russian share in the capital were attacked throughout Ukraine.