Major decision maker at Ukraine's central bank resigns after decade in key role
Kateryna Rozhkova, one of the heavyweights in charge of the National Bank of Ukraine, has stepped down, the bank said in a statement on Aug. 15.
The bank added that Serhiy Nikolaichuk, who has worked at the institution for about 20 years, would replace Rozhkova as senior deputy head of the National Bank of Ukraine. Rozhkova’s term expired two months ago but she continued in the role until a replacement could be found.
Rozhkova, who started working at the central bank in 2015, has frequently spoken out in favor of the bank’s independence from the executive branch and was one of the few top officials not controlled by the President’s Office.
She has played a key role in reforming Ukraine’s banking sector in accordance with Western standards. Rozhkova is also widely credited as the key figure behind the 2016 nationalization of PrivatBank, which belonged to oligarch Ihor Kolomoisky.
Banking sector reform
In 2015, Rozhkova was invited to join the team of Valeria Gontareva, then head of the National Bank of Ukraine. She became a deputy head of the bank in 2016 and its senior deputy head in 2018.
Following the 2014 EuroMaidan Revolution, the country was experiencing a "banking collapse” after the central bank removed 54 banks from the market due to insolvency, representing a third of the banking system.
Economic losses from Ukraine's 2014-2016 banking crisis were later estimated at 38% of the country's gross domestic product (GDP).
Rozhkova and her team participated in the rehabilitation of the banking system from 2015 to 2017 and the transformation of the central bank, implementing standards in accordance with EU requirements for Ukraine's membership.
"The fact that the financial system works like clockwork during a full-scale war is an indisputable result of the daily painstaking work of our entire team," Andriy Pyshnyy, current head of the central bank, said in a press release, commenting on Rozhkova’s departure.
PrivatBank nationalization
Rozhkova was also in charge of the 2016 nationalization of Kolomoisky's PrivatBank. The once-powerful businessman is now behind bars, charged with fraud and money laundering.
PrivatBank was nationalized in 2016 after a $5.5 billion hole was discovered in its ledgers. Rozhkova oversaw the creation and implementation of the bank's recapitalization plan before its transfer to state ownership.
The oligarch spoke out harshly against the official and even made threats shortly before the bank’s nationalization, as established by a London court.
Rozhkova has also faced pressure from law enforcement agencies over her role in PrivatBank's nationalization.
The Kyiv Post reported in 2021 that the Security Service of Ukraine and the State Investigation Bureau had open treason and embezzlement cases against Rozhkova for sharing information with forensic company Kroll Inc., consulting firm AlixPartners and law firms Hogan Lovells and Asters as part of PrivatBank's nationalization. However, she has not been officially charged.
Central bank’s independence
During Rozhkova’s career, the National Bank of Ukraine has repeatedly faced pressure from the authorities. Several central bank chiefs resigned from their jobs as the executive branch reportedly tried to limit its independence.
Rozhkova was the only top member of the previous team to retain her position despite pressure from Kyrylo Shevchenko, a central bank chief who was nominated by President Volodymyr Zelensky and appointed by parliament in 2020.
After Shevchenko took over as head of the bank in 2020, Rozhkova clashed with the central bank's leadership, which deprived her of much of her authority and reprimanded her. She then argued that the new division of functions at the National Bank of Ukraine was a threat to its independence and sued the bank.
Shevchenko himself had to resign in 2022 and faces criminal charges.
Ultimately, Rozhkova survived both the 2020 coronavirus pandemic and the start of Russia's full-scale invasion in 2022 as senior deputy head of the central bank.
Despite the invasion, the central bank has managed to ensure uninterrupted operation of the country's banking system. Its measures included fixing the hryvnia-to-dollar exchange rate and introducing currency restrictions to limit capital outflows.
