This move will lead to the establishment of the country’s first postal bank.
Government Decision
Prime Minister Denys Shmyhal announced that at a meeting on the 28th, the Cabinet of Ministers adopted a resolution allowing the transfer of PINbank shares, which were previously under the control of Russian oligarchs, to the Ministry of Infrastructure—subsequently handing them over to Ukrposhta:
“Today’s resolution transfers the shares of First Investment Bank—once belonging to Russian oligarchs—to the Ministry of Infrastructure, which will then pass them on to Ukrposhta. This is how the postal bank is being created,”
said Shmyhal.
Expanding Banking Services Nationwide
The creation of a postal bank will enable Ukrainians in remote areas to access banking services, especially where traditional bank branches are limited. Ukrposhta operates nationwide, offering essential services to rural and urban communities. According to the Prime Minister, this initiative will give citizens broader financial options without requiring advanced digital tools.
Shmyhal also noted that this decision could save the government approximately 5 billion UAH over the next three to four years—though he did not specify the exact allocation. He mentioned that the funds would be directed toward priority budget items.
Background on PINbank Nationalization
- In 2024, Igor Smilyansky, CEO of Ukrposhta, hinted that PINbank would be transferred to Ukrposhta, stating that “Russian oligarchs’ money will be utilized for the benefit of Ukrainian citizens.”
- The state announced the nationalization of PINbank earlier in 2024, acquiring an 88.89% stake that had belonged to Giner’s First Investment Bank.
- Giner faced sanctions from Ukraine’s National Security and Defense Council on June 19, 2022. In late 2023, his shares in PINbank were transferred to state ownership by a ruling of the High Anti-Corruption Court (HACC).
Prospects for Privatization
Media reports dating back to early 2023 suggested the possibility of Ukrposhta taking over PINbank. Vitaliy Koval, head of the State Property Fund, confirmed that privatization was under consideration:
“We are preparing for privatization. A decision about passing the bank to Ukrposhta may be approved, but until then, we’re proceeding with privatization,”
Koval commented at the time.
Ukrposhta’s Longstanding Search for a Bank
Ukrposhta has been seeking a banking partner to provide financial services across its extensive network, especially in remote areas. In 2022—prior to the full-scale war—the company approached the National Bank of Ukraine (NBU) to discuss purchasing Alpari Bank. The plan was to enable financial services (such as transfers, account management, and so forth) directly at postal branches.
- The Antimonopoly Committee granted approval, but on May 29, 2023, the NBU declined the request due to “document deficiencies.”
- By 2023, the sole shareholder of Alpari Bank opted to voluntarily cease banking activities without liquidating the legal entity—a process finalized on May 14, 2024.
Related Updates
- Ukrainians can now use the “National Cashback” program at Ukrposhta not only for utility payments but also to purchase goods, including food items, from participating postal outlets.
This transition to a postal bank model marks a significant milestone in Ukraine’s push to expand financial inclusion, particularly in underserved areas. The government’s latest initiative ensures that services remain both accessible and affordable for citizens across the country.
