Ukraine Revokes Licenses of Russian Banks Sberbank, VEB

Aside from dealing with banking sanctions from United States, European Union and British leaders, Russia’s financial services were further handicapped when the National Bank of Ukraine (NBU) revoked the licenses and liquidated the assets of two Russian banks — Sberbank and VEB, according to a press release.

Sberbank is the largest financial institution (FI) in Russia, and VEB finances the state’s national economic development, the release stated. The sanctions also include subsidiaries of the banks — JSC International Reserve Bank, which is 100% owned by Sberbank, and PJSC Joint Stock Commercial Industrial Investment Bank.

See also: Russian Banks Say They Can Weather Sanctions

“While our army selflessly and courageously defends every corner of our land from Russian aggression, we in the central bank cannot allow the subsidiaries of the invading country’s state-owned banks to continue working in Ukraine and operate with Ukrainians’ money,” NBU Chairman Kyrylo Shevchenko said in the release.

The Russian Central Bank (RCB) said it is ready to provide whatever support is necessary to banks on sanction lists, both in rubles and in foreign currency. The RCB also said on its website that it would apply “extra measures” if needed.

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Sberbank and VEB combined have about 50% of Russia’s banking system assets and one in two businesses banks with Sberbank, The Wall Street Journal (WSJ) reported.

Both FIs said in separate statements that they are ready to handle the sanctions.

“The adopted restrictions do not affect the safety and availability of client funds,” Sberbank said.

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“We have worked through several plans to counter the sanctions in ways which minimize the negative consequences for our clients,” VEB said.

VEB Capital was also suspended from trading on the London Stock Exchange on Friday, WSJ reported.