NBU moves Sense Bank off market
The National Bank of Ukraine (NBU) has decided to remove Sense Bank (formerly Alfa-Bank Ukraine) from the market and petition the government to explore nationalizing the bank, NBU Governor Andriy Pyshnyy said at a press briefing on July 20. This is a clear indication that Sense Bank could nationalized by the end of the week, as anticipated by NV Business.
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"NBU’s board has decided to remove the systemically important Sense Bank from the market and has proposed to the Cabinet of Ministers that the state participate in this process," said Pyshnyy.
He added that the government is expected to decide on nationalization by July 21 and he ruled out the possibility that NBU’s proposal to nationalize the bank could be rejected.
“The owners of Sense Bank, M. Fridman and P. Aven, who have indirect substantial stakes in the bank, are associated with the regime of the aggressor country (Russia),” the official added.
“Consequently, they have been subjected to sanctions in the EU, UK, Canada, Switzerland, Australia, and New Zealand, which involve asset freezes.”
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Sense Bank has a market share of 3.2%. After nationalization, the state's share in the banking sector will rise to 56%.
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An interim administration will begin working in the bank starting on July 21, and from July 24, the bank will operate as a state-owned entity. Victoria Stepanets, a senior official at the Deposit Guarantee Fund, has been appointed as the head of the interim administration.
During the nationalization process, Sense Bank will continue to serve individual clients, while service interruptions for businesses will last until the afternoon of July 21.
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NV Business reported the planned nationalization of the former Alpha Bank on the morning of July 20.
The government is bracing for lawsuits from Russian oligarchs Fridman and Aven, the owners of Sense Bank, who will likely seek compensation for their losses.
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