Ukrainian President Petro Poroshenko on Thursday has signed a decree to impose sanctions on the Ukrainian subsidiaries of five Russian state-run banks, the presidential press service said Thursday.

BanksThe restrictive measures, targeting Russia’s Sberbank, Prominvestbank, VTB Bank, VS Bank, and BM Bank, were introduced for a 12-month period, said the statement on the Ukrainian presidential website.

The sanctions are designed to prevent the outflow of capital from Ukraine, the statement said.

According to the National Bank of Ukraine, the restrictive measures stipulate that Ukrainian subsidiaries of Russian banks will be prohibited from making any financial transactions in favor of the parent banks.

In the same time, Russian banks’ branches will be allowed to continue their work with clients in Ukraine on a regular basis.

Commenting on the sanctions, Kremlin spokesman Dmitry Peskov said that Moscow closely monitors the situation and stands ready to protect Russian banks with legal instruments if a need arises.

The sanctions were introduced after Ukrainian activists carried out a series of attacks on the Ukrainian subsidiary of Sberbank this week in a protest against the alleged acceptance by the bank of documents issued by self-proclaimed Donetsk and Lugansk republics in the east of the country.

The attacks triggered the fears that Russian banks may withdraw capital from the Ukrainian market, hurting their Ukrainian clients.

Ukraine’s central bank estimated the loan portfolio of Ukrainian subsidiaries of Russian state-run banks at 5.58 billion U.S. dollars and their deposit base at 1.34 billion dollars. Enditem

Source: Xinhua/NewsGhana.com.gh

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