By MOSCOW/KYIV. May 12 (Interfax-Ukraine) – Sberbank plans to challenge the seizure by Ukraine of its assets in that country.
"Sberbank is initiating investment arbitration against Ukraine with a claim for damages based on the agreement of November 27, 1998 between the government of the Russian Federation and the Cabinet of Ministers of Ukraine on the encouragement and mutual protection of investments," the Russian bank said in a statement.
Ukraine’s National Security and Defense Council has decided to seize assets in the country belonging to Russia and its residents, such as 99.8% of shares in Prominvestbank (PIB) owned by Russian development corporation VEB.RF and 100% of shares in International Reserve Bank owned by Sberbank.
The council decision of May 11, which was confirmed the same day by a decree issued by Ukraine’s president, also calls for the seizure of financial assets in the form of VEB.RF’s rights to PIB debt totaling UAH 930 million and Sberbank’s rights to International Reserve Bank debt totaling UAH 14.9 billion.
Ukraine is also seizing other financial assets of these subsidiaries of Russian banks, with the exception of UAH 3 billion belonging to International Reserve Bank that will be used to meet claims from creditors.
The council decision and presidential decree were published on the website of Ukraine’s Verkhovna Rada on Thursday.
