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Kremlin vows to use all necessary means to protect interests of Russian banks in Ukraine

March 16, 15:14 UTC+3 MOSCOW

According to Peskov, the situation in Ukraine is "frightening"

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© Artiom Geodakyan/TASS

MOSCOW, March 16. /TASS/. The Kremlin promised to protect interests of Russian banks in Ukraine by all available means.

"Of course, if necessary, we will protect interests of our credit and financial institutions by all available legal means," Presidential spokesman Dmitry Peskov told reporters.

According to Peskov, "indeed, the situation in Ukraine is frightening by its tendency to increase tensions." "Economically, Ukraine ceases to be a reliable and predictable place for foreign and international investors, where it is possible to invest money and to be present as subjects of economic sphere," Peskov said.

"We are very concerned about the situation that is developing around our banks due to the restrictions that have been imposed or will be imposed on Russian legal entities or their subsidiaries," the Kremlin spokesman said, adding the "of course, this contradicts the international law." "We will continue to closely monitor the situation," Peskov assured.

Earlier on Thursday, Ukrainian President Pyotr Poroshenko imposed sanctions against five banks with Russian state capital operating in the Ukrainian market. Sanctions were introduced after the decision of the National Security and Defense Council of Ukraine adopted the day before. Restrictions are introduced for a year against Sberbank, VS Bank, Prominvestbank, VTB Bank and BM Bank.

Sanctions include a ban on withdrawal of funds outside of Ukraine, as well as payment of dividends, interest, return of interbank deposits and loans, funds from correspondent accounts of subordinated debt. The ban also concerns distribution of profits and capital of these five banks.

At the same time, restrictions, according to the National Bank of Ukraine, do not prohibit settlements between residents of Ukraine and their counterparties who have accounts in the parent structures.

Earlier Head of the Council Alexander Turchinov said that 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.

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.

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