Confiscation Of Prominvestbank: An Oversight That May Cost Ukraine Dearly
Russian shareholders want to recover PIB market value.
Privat Group represented by a list of 18 companies.
How much was PIB really worth when it was put up for sale?
On March 4, Justice Ministry officials sold 99.8% of Prominvestbank (PIB) shares on the PFTS, bypassing the decision of Stockholm arbitration and the standards of the National Bank of Ukraine (NBU). Russian shareholders represented by Vnesheconombank (VEB) have already announced their intention to recover the entire market value of PIB from Ukraine. The regulator threatened to declare the bank insolvent and the bank’s borrowers during restructuring process said they were not aware of who the new owner of the bank is. The asset is a “suitcase without a handle” after the sale, because the new management’s future policy will be to aggressively collect collateral and not engage in classic banking.
