Sberbank Cannot Negotiate Sale of Ukrainian Unit until Kiev Lifts Sanctions: Deputy CEO

The First Deputy CEO of Russia’s biggest lender, Sberbank, Lev Khasis, told reporters on Wednesday that the management will restart negotiations on the sale of its Ukrainian subsidiary after Kiev lifts sanctions against the bank, Interfax reports.

“Following the introduction of Ukrainian sanctions against Sberbank, resumption of negotiations with anyone about the sale will be possible after the removal of Ukrainian sanctions,” the banker said.

The bank’s asset is under such negotiations that it is impossible to hold negotiations on sale with anybody, Khasis noted. Coordination of previous buyers with the National Bank of Ukraine (NBU) failed as early as before the introduction of the sanctions, he added.

The Ukrainian subsidiary of Sberbank has been under sanctions since March 2017, when Kiev banned it from making any financial transactions in favor of related parties, including parent entities. The Russian lender has been trying to sell its business in Ukraine since then but the country’s central bank has refused to approve proposed deals.

According to the NBU, as of July 1, 2019, the Ukrainian branch of Sberbank ranked seventh in terms of assets in the banking system of Ukraine.