Ukraine to Seize Russian-Controlled Bank in Bid to Curb Moscow’s Influence
Ukraine is set to nationalize a bank controlled by two Russian businessmen, denying them a financial haven and seeking to curb their influence on Kyiv’s economy and politics. Sense Bank, formerly known as Alfa Bank-Ukraine, is controlled by Mikhail Fridman and Petr Aven, two Russian businessmen under European Union and United Kingdom sanctions over their alleged ties to the Kremlin, which they have denied.
Nearly a year and a half after Russia’s invasion, Ukraine is tackling a prominent and longstanding symbol of Moscow’s involvement in the country’s financial and political life as it struggles to right its institutions while defending itself on the front line. The bank aggressively expanded its holdings in Ukraine over the years and used that leverage to stifle criticism of Russia, according to people who have dealt with the bank.
Last month Ukraine passed a law mandating the nationalization of banks whose owners have been sanctioned in connection to Russia’s military effort. Meanwhile, since the invasion last year, Ukraine’s Western allies have seized yachts, real estate and other overseas assets of wealthy Russian businessmen, hoping they will exert pressure on Russian President Vladimir Putin to change course in Ukraine.
On Thursday, the National Bank of Ukraine said it had withdrawn Sense Bank from the market and proposed nationalizing it, citing its “support for actions and policies" that threaten Ukraine’s territorial integrity, sovereignty and independence. Ukraine’s ministerial cabinet is expected to endorse the petition.
Sense Bank confirmed the move in a statement, saying that once the cabinet makes its decision, an interim administrator will assign a new management group for the bank. Andriy Pyshnyy,
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