The President Volodymyr Zelensky signed a law allowing the nationalization of banks with sanctioned owners

The President Volodymyr Zelensky signed a law allowing the National Bank of Ukraine to nationalize banks of sanctioned owners (but only systemic banks).

This is stated on the website of the parliament.

If the bankʼs owners are under sanctions, the National Bank may:

• prohibit a sanctioned person (individual and/or legal entity) from acquiring or increasing a significant share in the bank;
• withdraw from the market a systemically important bank (nationalize), in particular, in the absence of signs of insolvency (in case of application of blocking sanctions to the bank or the owner of a significant participation in it).

The law also enshrines a provision on the possibility of compensation for losses suffered by depositors at the expense of the aggressor country.

This law will allow the National Bank to start the nationalization of Sens Bank (formerly Alfa Bank), the nominal owners of which are Russian oligarchs Mykhailo Fridman and Piotr Aven. In 2022, they were included first in the international, and later in the Ukrainian sanctions lists.