Former Ukrainian president Poroshenko may be stripped of influence over International Investment Bank
Pravda Ukraine
The National Bank of Ukraine (NBU) may decide to prohibit Petro Poroshenko, the fifth President of Ukraine and an MP for the European Solidarity party, from exercising his voting rights in respect of his shares in the Kyiv-based International Investment Bank.
Source: the National Bank of Ukraine in response to an inquiry from Ekonomichna Pravda
Details: The NBU noted that the sanctions recently imposed on Petro Poroshenko tarnish his business reputation as the owner of the International Investment Bank. Under Ukraine’s Law on Banks and Banking, owners and managers of Ukrainian banks must have an impeccable business reputation.
Quote from the NBU: “If signs of an imperfect business reputation are detected during the assessment of the owner’s reputation, the National Bank will deem such person’s business reputation to be flawed. However, such an assessment is made after a series of procedural actions, after which the NBU will formulate its own proposals for the imposition of measures against the owner.”
Details: The NBU added that the measures that may be taken with respect to a bank shareholder with an imperfect business reputation are listed in the Law on Banks and Banking, as well as in NBU Resolution No. 346.
Quote from NBU: “The temporary suspension of voting rights is also one of the measures that may be applied in the event of the non-compliance of the business reputation of an owner with a significant share in a bank.”
Details: Additionally, the NBU mentioned that in the first quarter of 2025, it had planned to conduct an on-site inspection at the International Investment Bank with regard to financial monitoring, and compliance with currency and sanctions legislation. However, no inspection visits to the bank are planned for 2025.
This is not the first time the NBU has deprived shareholders of voting rights over their bank shares in response to sanctions imposed by Ukraine’s National Security and Defence Council. This was the case for the sanctioned Russian oligarchs Mikhail Fridman, Petr Aven and Andrey Kosogov, the owners of Sense Bank, which was later nationalised.
Background:
- On 12 February, the National Security and Defence Council made the decision to impose sanctions against Petro Poroshenko and several other individuals.
- According to the NBU, Petro Poroshenko owns 64.98% of the shares in the International Investment Bank through the investment fund Prime Assets Capital.
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