Sberbank wants to control the Ukrainian banking sector

Sberbank of Russia conducts operation "capture"

In brief: All Ukrainian banks may go under the control of major Russian the financial institutions.

Savings Bank of Russia June 8, 2010 officially declared that he wanted to buy in Ukraine’s financial structure of the top ten. The day before on the financial market rumors that the Russians may be sold to Raiffeisen Bank Aval, which ranked fourth in assets and is valued by analysts at $ 2 billion.

Now Russian state-owned banks control in Ukraine, about 7% market share: 3% of assets in affiliated structure of Russian State Bank VTB, 3% – at Prominvestbank owned Russian VEB, another 1% market share in daughter’s Savings Bank of Russia. Purchase of Raiffeisen Bank Aval will strengthen the bargaining power of Russia for a further 6%. According to analyst BG Capital Vitaly Vavrischuka, it will positively affect the banking system of Ukraine – diversifies its risks. Now the majority shareholders of banks with foreign capital in Ukraine – it is shaped European business groups. In the past year and a half they actively replenish the capital of its Ukrainian subsidiaries, and also helped them to maintain liquidity by issuing loans. In the spring of this year, the eurozone economy is suffering because of budget problems in Greece and other countries. This led to a significant weakening of the euro against the dollar. If the situation in the EU will continue to worsen, then foreign investors could weaken the support of their assets in Ukraine. This is partly weaken our banking system. But the present Russian state-owned banks to maintain their structures are quite capable and definitely will do it.

Anrey Torbinski
2010-06-27 09:42, Economics.

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