The Ukrainian-based bank ALFA-BANK JSC is a legal entity that is different from the Russian-based Alfa-Bank, and so ALFA-BANK JSC (Ukraine) is not subject to international sanctions, the U.S. Department of the Treasury said in a statement regarding the imposition of a new package of sanctions on russia and russia’s Alfa-Bank in particular.
ALFA-BANK JSC (Ukraine) is a systemically important bank that operates in Ukraine, exclusively within the framework of Ukrainian legislation.
ALFA-BANK JSC (Ukraine) takes up a large share of the retail deposits market: the bank has drawn in more than UAH 48 billion in deposits from households, over 6% of all retail deposits in Ukraine. The bank also holds about UAH 24 billion in corporate deposits. The bank serves more than 2.6 million individuals, 55,000 legal entities, and 89,000 sole proprietors. In addition, the bank maintains a significant share of financial sector infrastructure (691 ATMs, 16,858 POS terminals, and 201 branches). Its performance is critical to financial stability.
Guided by Ukrainian law, the NBU has recognized as less than impeccable the business reputation of the shareholders of ALFA-BANK JSC (Ukraine) who are russian citizens and who have come under international sanctions. The NBU has applied corrective actions that forbid the qualifying holders of ALFA-BANK JSC (Ukraine) to exercise their right to vote.
However, the sanctions applied to the owners of ALFA-BANK JSC (Ukraine) do not put additional restrictions on the operation of ALFA-BANK JSC (Ukraine) in Ukraine. Nor do global sanctions against russian-based banks.
ALFA-BANK JSC is a systemically important bank, in line with NBU Board Decision No. 120–D On Identifying Systemically Important Banks dated 9 March 2022.