Russia's biggest bank Sberbank is selling its subsidiary in Ukraine to a consortium of investors, which include Norvik Bank (Latvia) and a Belarussian private company, Sberbank said in a statement on Monday, Censor.NET reports citing Reuters.
The deal is expected to close in the first half of 2017 after receiving approval by the financial and anti-monopoly regulators of relevant jurisdictions, including Latvia and Ukraine, it added.
Sberbank said the deal would not have a material effect on its consolidated results according to international reporting standards.
On Feb. 18, the President of Russian Federation Vladimir Putin signed a decree that declared documents issued to permanent residents of the so-called ''DPR'' and ''LPR'' republics valid in Russia. Later, Russia's Sberbank announced it had started servicing customers with passports of the so-called "DPR/LPR".
March 16, the activists held a rally outside Sberbank outlet at Volodymyrska Street in Kyiv. The rally participants brought concrete blocks and 'immured' its entrance in protest against bank's activity in Ukraine. They also burned flares. Sberbank suspended operation of the outlet at Volodymyrska Street and reported to the police.
On the same day, President of Ukraine Petro Poroshenko approved sanctions against five Russian-owned banks operating in the Ukrainian market.