The Cabinet of Ministers decided to nationalize Sense Bank of Ukrainian-born Russian oligarch Mikhail Fridman, the Finance Ministry announced on July 21.
"The government decided on the state's participation in the withdrawal of SENS BANK JSC from the market in order to ensure the stability of the financial system of Ukraine and protect the interests of depositors and other creditors of the bank," the ministry said in its statement.
The National Bank of Ukraine submitted a proposal to the government on July 20 requesting the government nationalize the bank as its owners are under sanctions.
The ministry assured its clients that the bank will continue to provide services as usual. The procedure of the nationalization and the appointment of the new management will proceed as fast as possible to ensure a smooth transition.
Formerly known as Alfa-Bank Ukraine, the bank rebranded itself following the invasion to avoid association with the Russia-based Alfa Bank JSC.
Alpha's founder Fridman is currently under international sanctions and was arrested in the U.K. in December 2022. He was released on bail on suspicion of fraud-related offenses.
Investigative reporters discovered in May that his company Alpha Insurance Firm insures cars of Russian military fighting in Ukraine.
The company is also reported to provide services to Russian President Vladimir Putin's Main Office of Special Programs, which guards him. Another company Fridman co-owns, X5 Retail Group, also cooperates with the Russian military through the group's grocery chains.
On May 29, Ukraine's parliament adopted a bill allowing to nationalize banks owned by sanctioned individuals.
