Exclusive: Ukraine’s central bank chief says 2 state-owned banks have 'good chance' of being privatized by year-end
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GDANSK, Poland — Two state-owned banks will likely be privatized by the end of this year, Ukraine's central bank chief Andriy Pyshnyi said, with the government poised to adopt an "ambitious strategy" on state-owned banks.
Sense Bank and Ukrgazbank have a "good chance" of being privatized by the end of 2026, he told the Kyiv Independent in an interview on June 24 on the sidelines of the Ukraine Recovery Conference in Gdansk, Poland.
"We want the process of privatization to be completed this year, generate income for the state budget, and also to bring new investors that will fuel healthy competition in the market," Pyshnyi said.
Over half of the assets in Ukraine's banking system are held by state-owned banks. The country hopes to privatize several key banks in a push to reduce inefficiency and meet the market economy standards required for EU accession.
The government will launch its strategy on state-owned banks by the end of June, Pyshnyi said. While the Cabinet of Ministers formally launches privatizations, the country's finance ministry and central bank both play a big role in the process.
Pyshnyi also said that there is an interest from large and reputable investors, like international financial institutions, to participate in the privatization of PrivatBank and OschadBank — Ukraine's largest banks which dominate the sector, but added that the two were "unlikely" to be privatized by the end of 2026.
Ukrainian President Volodymyr Zelensky said earlier this year that the country would privatize Sense Bank in 2026. Prime Minister Yulia Svyrydenko said that Ukrgazbank was a priority for privatization this year.
Ukraine’s state-owned companies have long been battlegrounds for political influence and self-dealing, with individuals sometimes hijacking the privatization process to turn political connections into private wealth.
Earlier this year, leaked transcripts of wiretapped conversations revealed two businessmen with ties to close friends of Zelensky discussing potential candidates for the supervisory board of Sense Bank — appearing to exert influence over a process that should be free of outside interference.
"We want the corporate governance system to enjoy trust, and translate into confidence in Ukraine's financial system so that it's attractive for private investors," Pyshnyi said in response to whether he was worried that the privatization push could be captured.
"Of course, when we hear about challenges to corporate governance in some banks, the National Bank responds."
Pyshnyi said that the privatization of Sense Bank and Ukrgazbank will be done with the engagement of an external advisor to the government, to strengthen the process.
"This will send a strong signal to the private capital that the Ukrainian banking system is prepared for privatization," he said.
Before the full-scale invasion, Ukraine had aimed for state-owned banks to hold less than a quarter of the banking system's total assets.
