Page 59 - UKRRptAug22

8.1.4 Bank news
The licences of financial institutions with Russian employees will be suspended. The National Securities and Stock Market Commission (NSSMC) has supplemented the grounds for suspending a license to operate in capital and organized commodity markets during martial law. Institutions with positions held by citizens of Russia or Belarus will serve as a reason for the temporary suspension of their license, the press service of the NSSMC reported. The following positions are included in the list: shareholder or ultimate beneficiary, a person exercising the powers of an executive body, chairman or member of the supervisory board, internal control system employee, an employee responsible for financial monitoring, accountants, an employee who carries out operations associated with the implementation of activities in the capital and organized commodity markets. Exceptions are persons who have Russian Federation or Belarusian citizenship and reside in Ukraine on legal grounds.
Megabank is being liquidated in Ukraine. The National Bank has decided to revoke the banking licence and liquidate Megabank, the NBU press service reported. The National Bank classified Megabank as insolvent on June 2, 2022. The reason was significant violations in their credit risk assessment, insider lending, and non-fulfillment of the recapitalization plan. On June 7, the Deposit Guarantee Fund of Individuals began accepting applications from potential investors to participate in an open tender to withdraw Megabank from the market. By the way, this is the first bank whose depositors are subject to the rule of full reimbursement of funds during martial law.
Alfa-Bank Ukraine changes its name to Sense Bank. The National Securities and Stock Market Commission has been informed that Alfa-Bank Ukraine is changing its name to Sense Bank. Two months ago, after sanctions on the Russian shareholders of Alfa-Bank, the National Bank of Ukraine removed them from management and appointed Bulgarian economist Simeon Dyankov as an independent proxy. The bank does not want anything to do with the aggressor country, even an association with the brand operating in Russia under the same name, said Dyankov. Moreover, the bank's mobile application has been called Sense SuperApp for several years already, reported Financial Club.
Ukraine demands US and EU banks stop working with Russia. At least four Western banks, JPMorgan, HSBC, Citigroup, and Crédit Agricole, received letters from Ukraine demanding they cease cooperation with Russia in the oil sector. Ukraine justified its position by the fact that granting loans to companies that supply Russian oil leads to a prolongation of the war. As noted by Oleg Ustenko, economic adviser to the President of Ukraine, on whose behalf the letters were sent, the Ministry of Justice will file a lawsuit against the banks at the International Criminal Court after the war's end. Special services of Ukraine are already collecting information about financial institutions that support trade in Russian fossil fuels. The letters to the banks also state that they will be prohibited from participating in the post-war reconstruction of Ukraine in the event of further cooperation with Russia.
59 UKRAINE Country Report XXXX 2018 www.intellinews.com