Moody's: sanctions against Ukrainian subsidiaries will have little effect on parent banks in Russia
Ukrainian sanctions against the subsidiaries of Russian banks will have little effect on the parent banks themselves.
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This is what experts from the Moody's rating agency think, Interfax-Ukraine reports.
It is noted that Russian parent banks have “a very small part of their balance sheets” in Ukraine. Thus, according to experts, by the end of 2016, the assets of Sberbank (Ukraine) amounted to 0,46% of the total assets of the parent organization, VS Bank (owned by Sberbank) - 0,04%, and Prominvestbank (subsidiary) VEB) - 2%, at BMBank (a subsidiary of VTB) - 0,03%, at VTB Bank - 3,3%.
The review notes that “negative public opinion, growing regulatory pressure and uncertainty about the future of banks” could negatively affect the work of Ukrainian subsidiaries. Which could subsequently lead to an outflow of customer deposits, a deterioration in the liquidity position and state of business in Ukraine.
Let us remind you that it all started with the fact that on March 7, Sberbank of Russia announced that, in accordance with Vladimir Putin’s decree on the recognition of documents from the Donbass republics, it began servicing in its branches clients providing passports of the DPR and LPR. In response to this, the Minister of Internal Affairs of Ukraine Arsen Avakov called on the National Bank of Ukraine to “immediately impose sanctions” against the Russian bank.
On the same day, the NBU stated that if information about Sberbank of Russia’s readiness to provide services to DPR and LPR passport holders is confirmed, they will initiate before the National Security and Defense Council the issue of applying sanctions to the subsidiary bank of Sberbank of Russia, Sberbank PJSC.
On March 15, the National Security and Defense Council instructed the National Bank and the SBU to analyze the activities of banks in the capital of which there is a share of state banks of the Russian Federation. In the evening of the same day, the NBU proposed applying sanctions against five banks. On March 16, President of Ukraine Petro Poroshenko approved sanctions against Sberbank, Prominvestbank, VTB, BMBank and VS Bank for a period of one year.
In turn, the press secretary of the Russian President Dmitry Peskov said that the Kremlin, if necessary, will protect the subsidiaries of Russian banks in Ukraine by all means.
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