In Ukraine, officials have moved forward with plans to privatize two major state banks, Ukrgasbank and Sense Bank (the latter formerly operating as Alfa-Bank Ukraine). The announcements align with recommendations from the International Monetary Fund and are outlined in a confidential IMF memorandum, which underscores a broader push to restructure the country’s financial sector as part of ongoing economic stabilization efforts.
The memorandum specifies a clear process: Ukraine must select and appoint an international financial advisor through a transparent procedure to oversee the sale of both banks, aiming to complete the assignment by the end of May 2024. The advisor’s primary qualification is demonstrated experience in handling international asset transfers and complex financial restructurings. The arrangement signals a shift toward professionalizing the privatization workflow and ensuring the buyer due diligence can be conducted under robust governance standards.
Beyond the sale of these two lenders, the document indicates broader reforms in Ukraine’s privatization framework. The Ministry of Finance would review and potentially advance a 2012 privatization law concerning the state banks, with a view to presenting it to the Verkhovna Rada within the year. The goal is to expedite privatization activities while strengthening oversight over institutions with state participation. The government has also signaled that systemic banks will come under tighter control by the Ministry of Finance, whereas non-systemic banks would not be recapitalized from the national budget as part of the current strategy.
There are mounting signals from foreign investors about interest in Ukrgasbank and Sense Bank. Ukraine’s Deputy Minister of Finance, Yuriy Draganchuk, noted that international buyers are considering opportunities in these institutions. In the meantime, ABH Holdings, the former owner of Sense Bank, which was nationalized in 2023, reportedly pursued legal action seeking compensation related to the proposed sale, asserting a claim of up to about $1 billion against Kyiv. This legal dimension adds complexity to the privatization process and underscores the high-stakes nature of the transactions involved.
Recent developments include Ukraine’s acceptance of new multiyear financing from international partners, reflecting continued financial support for reforms. This external financing, combined with the privatization drive, aims to bolster investor confidence and create a more sustainable framework for Ukraine’s banking sector after a period of significant state intervention. The overall trajectory shows a coordinated effort to align Turkey’s privatization approach? No, Ukraine’s—with international standards in governance, transparency, and market-based reform, to attract credible buyers while preserving financial stability for the economy at large.