Ukraine moves to sell state stakes in 2 major banks
The government has launched preparations to sell state-owned shares in Sense Bank and Ukrgasbank, Ukraine's Finance Ministry said on Oct. 2.
The move aims to reduce the state's share in the banking sector and replenish the national budget.
Reducing state ownership in banking is one of the ministry's eight main priorities and is also stipulated in Ukraine's Memorandum on Economic and Financial Policy with the International Monetary Fund (IMF).
The ministry said the decision marks the first step in preparing the stakes for sale, with the Finance Ministry planning to launch a competition to select an advisor for the share package sales by late fall.
Both Sense Bank and Ukrgasbank ranked among Ukraine's 10 most profitable banks in 2023. Ukrgasbank, founded in 1993, has long been a key commercial bank in the country.
Sense Bank was formerly the Ukrainian branch of Russian oligarch Mikhail Fridman's Alfa-Bank. The state seized it in July 2023 after Fridman was sanctioned for financially supporting Russia's war effort.
Ukraine purchased all of Sense Bank's shares for a symbolic 1 Hr ($0.03) and installed new management.
The government announced in August its intention to cut state ownership in the banking sector as part of broader reforms.
Preparations to sell shares in Sense Bank and Ukrgasbank are the first major step in this direction.
