The Ukrainian government plans to begin the privatization of two systemically important state banks – Sens Bank and Ukrgasbank – in 2025. This move is aimed at reducing the state’s share in the country’s banking sector.
This is reported by Finway
Key Stages of Preparation for Privatization
According to the draft Action Program of the government led by Yulia Svyrydenko, it is anticipated that the necessary resolution of the Cabinet of Ministers regarding the procedure for engaging an advisor for the sale of state shares in the banks will be adopted. A competition is also planned to select such an advisor. Among the main tasks are:
- Regulating the process of competitive selection of an advisor for the sale of shares in systemically important banks;
- Adoption of the resolution “On Approval of the Procedure for Engaging an Advisor for the Sale of Bank Shares” by October 31, 2025;
- Engaging an advisor for the sale of shares in Sens Bank and Ukrgasbank according to the established procedure and the government’s decision to commence the sale.
Legislative Changes and Challenges of Privatization
In the fall of 2024, the Verkhovna Rada adopted a law that allows for the sale of state shares in banks not only in full but also partially, simplifying the privatization process. Furthermore, the new legislation provides for the involvement of international donors in the selection process of financial advisors and the sale itself.
The selection of advisors for Ukrgasbank and Sens Bank is a significant point in the memorandum between Ukraine and the International Monetary Fund. Despite this, the privatization process of state banks in Ukraine has previously faced difficulties. In particular, the selection of financial advisors for the mentioned banks was supposed to be completed by the end of March, but this stage has been prolonged. One reason is that, according to the head of the National Bank of Ukraine, Andriy Pyshny,
“an independent assessment of the quality of the banks’ assets should occur only after the active phase of hostilities has concluded.”
Additionally, during the war, state banks have become an even greater source of revenue for the state budget than before the full-scale invasion.