Ukraine Withdraws Assets of Ru Subsidiaries in Ukraine on $1 Bln

by Olha Povaliaieva
Thursday, May 12, 2022
Ukraine Withdraws Assets of Ru Subsidiaries in Ukraine on $1 Bln

"Prominvestbank" and "MR Bank", registered in Ukraine and owned by the "Bank of Russia", were blocked on 25 February. And as of May 11, all their assets have been nationalized

The National Security and Defense Council of Ukraine has announced the forcible seizure in favor of Ukraine of banks' assets ultimately owned by Russia. That is, the practical implementation of the law On the basic principles of forced seizure in Ukraine of property rights of the Russian Federation and its residents has begun.

According to the order of the president of Ukraine, "financial assets in the form of rights to claim the debt of VEB.RF to the name of 0.93 billion and Sberbank of Russia to the MR Bank of 14.9 billion UAH are also seized," Interfax reports.

The resident's order is not aimed only at UAH 3 billion of the MP Bank's, as they are designed to repay debts to creditors. The decision was published on the portal of the parliament of Ukraine and entered into force on May 11.

"Ukraine collects part of the financial assets in the form of rights to claim debt, funds in the accounts, domestic government bonds, and certificates of deposit. Therefore, of course, the next decision should be the decision of the National Security and Defense Council. Still, this important step towards (withdrawal) made today ", first deputy prime minister Yulia Svyridenko.

On March 11, the National Bank of Ukraine proposed to the cabinet of ministers of Ukraine to withdraw the assets of MR Bank and Prominvestbank in favor of the state.

"About UAH 26 billion can be spent on state revenue. These are funds, domestic government bonds, and a certificate of deposit. It is clear that Ukrainian depositors of these banks must first receive their deposits within the guaranteed amount," said Kyrylo Shevchenko, chairman of the National Bank.

We remind you that the National Bank of Ukraine revoked the licenses of Prominvestbank and MR Bank on February 25, i. e., on the 2nd day of Russia's full-scale war against Ukraine.

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