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Russian bank considering sale of Ukrainian subsidiary

The troubled Russian bank mulls selling its Ukrainian daughter.

Russian bank considering sale of Ukrainian subsidiary
Photo: politekonomika.ru

Russian Vnesheconombank (VEB) is going to withdraw from Ukrainian market, its executive board chairman Sergey Gorkov has said.

"We have two 'daughters': VEB Leasing and Ukrainian Prominvestbank so we need to urgently work out a plan for them. The situation with the Kiev bank liquidity has normalized, capitalization seems to be even above the norm. We intend to appeal to the NBU for the stabilization liquidity. We are looking at the assets restructuring, working with the portfolio and costs optimization. Eventually, we will consider the possibility of withdrawing from [Ukrainian] market. The decision will be taken when we prepare a strategy," Gorkov said as quoted by TASS.

The US Treasury imposed sanctions on Prominvestbank as a subsidiary of the Russian state-owned Vnesheconombank.

As of 1 October 2015, Prominvestbank held the 4th place in terms of assets (55.9bn dollars) among 123 Ukrainian banks.

VEB bought Prominvestbank in early 2009.

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