Ukraine pension fund to cease payments via Russian state-owned banks subsidiaries from April 1

The Pension Fund of Ukraine will terminate pension payments to Ukrainian citizens through Ukrainian subsidiaries of Russian state-owned banks starting April 1, the PFU told Segodnya. Said services will automatically be transferred to the local Ukrposhta branch offices.

The date of payment of the pensions is retained.

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, namely Sberbank, Prominvestbank, VTB Bank, BM Bank, and VS Bank, PFU said.

The credit cards of customers of the mentioned banks are not blocked, they can be used. If a pensioner does not want or cannot receive pension at the post office, he(she) should apply to the regional department of the PFU at the place of residence and re-form the receipt of a pension in a Ukrainian bank. They can also apply for the receipt of the pension via a postman.

According to the economy analyst Olexandr Okhrimenko, about a million pensioners, or 6-7% of the total number of pensioners, will suffer temporary inconveniences.

"Five years ago Russian banks entered our market, massively opened branches in bedroom communities of cities and were the only ones who charged interest on the balance, which attracted pensioners, especially those who receive decent pensions and do not spend them immediately. But now interest is also paid by Ukrainian banks, so people will not lose anything", — Okhrimenko told.