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Kiev orders to submit proposals on sanctions for Russian banks

Since March 13, Ukrainian nationalists have been blocking activities of Sberbank’s central office in Kiev

Head of the National Security and Defense Council of Ukraine Alexander Turchinov Mikhail Palinchak/Press Office of the President of Ukraine/TASS

Head of the National Security and Defense Council of Ukraine Alexander Turchinov

© Mikhail Palinchak/Press Office of the President of Ukraine/TASS

KIEV, March 15. /TASS/. The National Security and Defense Council of Ukraine instructed the National Bank and the Security Service of the country to make proposals within a day for imposing sanctions against banks with a state share of the Russian Federation, according to Head of the Council Alexander Turchinov.

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"The National Bank of Ukraine and the Security Service of Ukraine were instructed to analyze the activities of the banking institutions of Ukraine, with shares of state-owned banks of the Russian Federation the capital, and to make relevant proposals within a day, in particular, regarding imposing sanctions," UNIAN news agency quoted Turchinov.

Since March 13, Ukrainian nationalists have been blocking activities of Sberbank’s central office in Kiev, pitched tents in front of the building, made bonfires. At the same time, Russian banks in Ukraine are under pressure from the authorities. The National Bank of Ukraine announced on March 7 that it is ready to initiate sanctions against Sberbank’s subsidiary in Ukraine, if information about the bank providing services in Russia to customers with passports of Donetsk and Luhansk People's Republics is confirmed.

Ukrainian unit PJSC Sberbank was founded in 2001, with Sberbank as the sole owner. According to the National Bank of Ukraine, as of July 1, 2016, Sberbank held the 7th place (47.845 bln hryvnia - $805.15 mln) among the country’s 108 banks in terms of total assets.

Earlier on Wednesday, the National Security and Defense Council of Ukraine instructed the National Bank and the Security Service of the country to make proposals within a day for imposing sanctions against banks with a state share of the Russian Federation.

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"The National Bank of Ukraine and the Security Service of Ukraine were instructed to analyze the activities of the banking institutions of Ukraine, with shares of state-owned banks of the Russian Federation the capital, and to make relevant proposals within a day, in particular, regarding imposing sanctions," UNIAN news agency quoted Head of the Council Alexander Turchinov.

Russian Presidential spokesman Dmitry Peskov said that the Kremlin is "closely watching" the situation with the divisions of Russian banks in Ukraine. "Obviously, we are closely watching what is happening in Kiev with great concern," Peskov said.

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