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VTB has similar problems: the bank collects almost no interest payments. “The current year’s figure is primarily due to the revaluation of individual assets within the framework of the optimization strategy implementation,” the VTB press service said. The VEB press service did not respond to enquiries.
The capital adequacy ratios of all three banks are higher than the regulatory minimum of 10% of the total loan portfolio at 20.56% for Sberbank, 15.06% for Prominvestbank and 13.35% for VTB.
“VTB is in the worst situation with capital adequacy,” adds Paraschiy. “Another unprofitable quarter, and they will have to pour more money into the bank.”
2.2 Ukraine’s prosecutor general office identifies $5.5bn of assets looted from Privatbank
Ukraine’s Prosecutor General's Office (PGO) has identified a long list of yachts, Picasso paintings, mansions, factories and other assets worth $5.5bn that were bought with the $5.5bn looted from the country’s largest bank Privatbank that was nationalised in November 2016.
The details were unearthed by a forensic audit carried out by investigators Kroll , but the difficulty now is to prove who owns all these assets as without identifying the beneficial owner the courts can’t act to return them to the Ukrainian state, Prosecutor General Yuriy Lutsenko told the Kyiv-based Interfax-Ukraine news service on November 5.
The government nationalised Privatbank in December 2016 after it failed to fulfil a three-year recapitalisation plan . When the NBU checked the books it found that 98% of the loans the bank had made were related party transactions allegedly to companies controlled by the former owners, Ukraine’s uber-oligarch Ihor Kolomoisky and his partner Hennadiy Bogolyubov.
Former NBU governor Valeriya Gontareva, who over saw the closure of PrivatBank, threatened the shareholders with criminal charges if they didn't return at least some of assets and former Finance Minister Oleksandr Danylyuk repeated the promise in an interview with bne IntelliNews the following year. Both politicians have since been ousted from their jobs so far progress towards recovering the stolen funds has been slow.
However, the authorities stuck their first major blow against the former owners of Privatbank in December last year when a London court froze $2.5bn worth of the oligarch’s worldwide assets in decision in the Ukrainian authorities favour. Kolomoisky and Bogolyubov challenged the applicability of jurisdiction of the High Court of Justice in London in considering the case concerning Ukrainian assets in July this year and the case is still being heard.
The National Bank of Ukraine (NBU) launched legal proceedings in both Switzerland and Ukraine against Kolomoisky in June , according to the regulator's statement e-mailed to bne IntelliNews on June 11.
"Both cases concern the enforcement of Kolomoisky's personal sureties given in 2016, in favour of the NBU, to guarantee repayment of the liquidity support
7 UKRAINE Country Report December 2018 www.intellinews.com