The Cabinet of Ministers is preparing to privatize state-owned banks: what will happen to PrivatBank, Sens Bank, and Ukrgazbank?
2 July 12:25
The Cabinet of Ministers has updated the Main Strategic Directions for the Activities of State-Owned Banks. The new version of the document calls for a gradual reduction of the state’s share in the banking market, preparations for the sale of Ukrgasbank and Sens Bank, and, in the long term, the privatization of PrivatBank. This was reported by the Ministry of Finance of Ukraine, according to "Komersant Ukrainian"
The ministry explained that the government’s new decision is aimed at gradually reducing the state’s share in the banking sector. The document provides for the sale of stakes in Ukrgazbank and Sens Bank to private investors.
At the same time, the country’s largest state-owned bank may be sold only after martial law has been lifted. The government has not yet determined a specific date for PrivatBank’s privatization, a buyer, or the value of its shares.
The Ministry of Finance developed the updated strategy with the involvement of international experts as part of Ukraine’s commitments to the International Monetary Fund and the European Union.
Which state-owned banks are planned for sale
The updated strategy provides for the sale of state-owned stakes to investors in:
- AB “Ukrgasbank”;
- JSC “Sens Bank.”
The government began preparing these two institutions for privatization back in 2025. The Financial Stability Council conducted a preliminary risk assessment and concluded that the sale of these stakes should not negatively impact the stability of the banking system.
The Ministry of Finance announced the start of preparations for the sale in October 2025.
The new strategy establishes privatization as one of the key priorities of state banking policy.
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Will PrivatBank Be Sold?
The privatization of PrivatBank is also provided for in the updated document, but with an important condition.
The sale of JSC CB “PrivatBank” is permitted only after martial law has ended.
This means that the government does not plan to put the largest state-owned bank up for sale during the active phase of the war.
As of the date the strategy was adopted, the following have not been determined:
- the start date of privatization;
- the size of the stake;
- the starting price;
- potential buyers;
- the format of the tender;
- deadlines for closing the deal.
Thus, the Cabinet of Ministers’ decision serves as a strategic guideline rather than an announcement of a specific auction.
What Will Change in the Strategies of State-Owned Banks
The updated strategy was developed in collaboration with international experts to fulfill Ukraine’s obligations to the IMF and the EU. During the war, state-owned banks will primarily finance the defense sector, the energy sector, farmers, the processing industry, frontline regions, and mortgages.
Stricter rules for management are also being introduced—in particular, annual performance evaluations will be implemented for supervisory boards, and the list of grounds for dismissing independent members due to reputational risks will be expanded.
In addition, every public-sector financial institution must update its individual strategy by the end of 2026.
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