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Report: VEB mulls offloading Ukrainian unit

plans to exit theUkrainian market in the "foreseeable future," VEB President SergeyGorkov reportedly told news agency Prime in an April 5 report.

Theexecutive noted that owning a Ukrainian commercial lender does not fit withVEB's strategy as a development bank. More clarity about a Ukraineexit is reportedly expected to be provided when VEB approves a new strategy.

Gorkovrecently met with Ukraine's central bank head, Valeriya Gontareva, to discussVEB's local unit, PSCProminvestbank. The liquidity of the unit improved recently andUkrainian regulators could soon remove it from the group of problem banks, theVEB president said.

Ukrainianmedia outlets reported in February that Prominvestbank accepting retails deposits andimposed limits on ATM withdrawals, citing at the time temporary technicalproblems.