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Russian VEB to close its subsidiary in Ukraine, - media

Russian VEB to close its subsidiary in Ukraine, - media

Open source
Russian Vnesheconombank (VEB) intends to close its bank subsidiary in Ukraine – Prominvestbank, yet the final decision will be made in November, as Kommersant reports referring to the sources.
“VEB is breaking off the relations with its last buyer – Pavlo Fuks, a Ukrainian-Russian businessman, as he could not coordinate the deal with the National Bank of Ukraine (NBU) in any aspect,” the news agency reads.
VEB press office did not comment on this.

VEB has actually refused to sell its subsidiary PIB to Ukraine. Now, the bank is canceling active operations – it stopped providing loans and attracting investments.
According to the experts’ estimations, VEB loses more than $346,1 million from closing Prominvestbank.
“99,7% of Prominvestbank belongs to VEB. According to the report for the first half of 2018, the bank’s assets exceed $653,8 million. PIB is on the 11th place in assets on the Ukrainian market. Bank’s loss for six months was $15,5 million,” the message says.

Besides, the source of the news agency noted that the bank had issues leaving the Ukrainian market: bank’s balance has loans which expire no sooner than in four years. Moreover, the bank owns real property in Ukraine worth around $50 million and its selling takes time.
There are five Russian banks in Ukraine: Sberbank, VTB, BM Bank, Prominvestbank and VS Bank that are under the sanction. The government banned them from the holding of the financial operations for the benefit of the connection to them establishments and persons, including the parent structures.
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