The Ukrainian central bank allowed Russian state-owned lenders to recapitalize their local sanctions-hit units, Liga.net reported May 25.
The decision will prevent the local financial institutions from being declared insolvent because of the lack of capital, which would put additional burden on Ukraine's bank guarantee fund and the state budget, the news report noted.
Ukrainian units of Russian state-owned banks include PAO Sberbank of Russia unit Sberbank JSC, VTB Bank (PJSC) units PJSC VTB Bank and PJSC BM Bank, as well as Vnesheconombank unit PSC Prominvestbank. Ukrainian authorities recently updated the list of sanctions against Russian entities and individuals, extending existing sanctions against the Ukrainian units of state-owned banks to three years, Liga.net noted.
