Ukrainian parliament to consider draft law on nationalisation of all Russian assets – Zelenskyy

FRIDAY, 30 SEPTEMBER 2022, 17:14

The National Security and Defence Council has decided to apply sanctions to significant individuals and legal entities of the Russian Federation. The Verkhovna Rada (Ukrainian Parliament) will consider a draft law on the nationalisation of all Russian assets.

This was stated by the President of Ukraine, Volodymyr Zelenskyy, in a video message following the results of the National Security and Defence Council meeting.

"Today, the National Security and Defence Council of Ukraine has adopted a decision to apply sanctions to significant individuals and legal entities of Russia who did not have the courage to speak out in defence of humanity and international law or who in one way or another are involved in aggressive steps against Ukraine and the community of democratic peoples,"  said Zelenskyy.

He also announced that a draft law on the nationalisation of all Russian assets, "which should significantly simplify this procedure", will be considered at the next session of the Verkhovna Rada.

Zelenskyy appealed to members of the Ukrainian parliament to support this draft law "without delay".

"We are completing the dismantling of Russian influence on Ukraine, Europe and the world," the president said at the conclusion of his address.

Background:

The Tax and Customs Policy Committee of the Verkhovna Rada of Ukraine supported the draft law on the specifics of withdrawing a systemically important bank from the market under martial law (No. 8069) in general and in principle.

The Verkhovna Rada has registered a draft law regulating the process of withdrawing a systemically important bank from the market under martial law.

The draft law amends the Tax Code and the law on the Deposit Guarantee Fund. In particular, it modifies the procedure for withdrawing a systemically important bank from the market with the participation of the state, i.e. through nationalisation.

Member of Parliament Yaroslav Zheleznyak, the co-author of the draft law, says that the nationalisation of a systemically important bank will take place without its recapitalisation by the state. The bank's shares will be sold to the government for 1 hryvnia [approximately US$0.027].

Also, in the course of nationalisation, the state will not carry out the bail-in procedure — the exchange of the bank's obligations to related parties for additional bank shares. Such obligations (for example, deposits of its owner) will simply be cancelled, and the funds will be included in the income and capital of the institution.

The authors of the draft law have prepared the same outcome not only for deposits held by people connected with the bank, but also for the bank's obligations to people against whom international sanctions have been imposed. Such people’s losses should be recovered from the reparations received by Ukraine from Russia.

It should be noted that currently the list of systemically important banks includes 14 Ukrainian banks, in particular all four state banks, private Ukrainian banks, and banks with foreign capital, in particular Alfa-Bank. International sanctions have been imposed on the owners of the latter, Russian oligarchs Mikhail Fridman and Petr Aven.

European Pravda wrote that Ukraine may also introduce sanctions against Fridman and Aven in the near future.

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