The NBU has set its sights on privatizing key banks. What do we know about them and how will this change the financial market?
21 March 2025 17:10
The National Bank of Ukraine (NBU) has identified two state-owned banks that could potentially be privatized first. These are Ukrgasbank and SENSE BANK, [Komersant ] reports, citing Kateryna Rozhkova, deputy head of the NBU.
This statement is a logical continuation of the policy of gradual reduction of state participation in the banking system, which Ukraine has committed to implement in the framework of cooperation with international financial partners.
According to Rozhkova, Ukrgasbank has long been ready for privatization: its financial statements are transparent, its corporate governance has been reformed, and its processes comply with international standards. Back in 2020, the International Finance Corporation (IFC), a part of the World Bank, bought a minority stake and became a partner in preparing for a full sale.
Thus, Ukrgasbank is the first on the list for privatization and can attract a large strategic investor interested in environmental and sustainable investments: the bank is actively developing green financial products.
SENSE BANK (formerly Alfa-Bank), nationalized in 2022 after sanctions were imposed on its former Russian owners, is currently undergoing a transformation process. Despite its “difficult” past, the bank remains systemically important and has an extensive infrastructure, which makes it an interesting asset for potential investors. However, its sale is possible only after the completion of internal restructuring and full stabilization of its operations.
Rozhkova emphasized that the privatization of these banks is not just a desire of the state to get rid of assets, but a tool to increase the competitiveness of the banking sector, strengthen market mechanisms and attract international capital.
The deputy head of the NBU also noted that any privatization processes will take place exclusively on transparent and competitive terms, in close coordination with international donors, including the IMF, the World Bank, and the EU. These institutions expect Ukraine to take real steps towards market transformation and reduce the influence of the state in the economy.
Why Ukrgasbank and SENSE BANK will not be privatized in 2025
“The privatization of the first state-owned banks this year is physically unrealistic, because it is a long process,” Rozhkova explained.
According to her, preparations for the sale were delayed due to the lengthy adoption of the law on the peculiarities of privatization of state-owned banks, which the president signed only in October 2024. Now it is necessary to select a financial advisor to start the process.
What we know about SENSE BANK
This is a Ukrainian universal bank, which until July 2022 was known as Alfa-Bank Ukraine. After the imposition of sanctions against its Russian owners, the bank underwent a brand change, and in 2023 it was nationalized and brought under state control.
- Legal name: JSC “SENS BANK”
- NBU license: no. 61 dated 05.10.2011
- Head office: 4/6 Desyatynna St., Kyiv, Ukraine
- Type of ownership: state-owned
Until 2022, the bank was part of the Alfa Group, owned by Russian oligarchs, including Mikhail Fridman. After Russia’s full-scale invasion of Ukraine, the bank was subjected to international and Ukrainian sanctions pressure.
In July 2022, it began rebranding and gradually distancing itself from Russian influence. In July 2023, the National Bank of Ukraine recognized the need for nationalization, and the bank was transferred to state management through the Ministry of Finance.
Financial indicators (as of the end of 2024):
- Assets: about UAH 100 billion.
- Retail deposits: over UAH 45 billion.
- Equity: positive, stabilized after nationalization.
- Number of branches: about 170 throughout Ukraine.
- Number of employees: over 3,500 people.
Services and specialization
SENSE BANK provides a full range of banking services:
- private individuals (cards, deposits, loans)
- small and medium-sized business services;
- corporate banking services;
- internet banking (Sense SuperApp);
- mortgage and car loans;
- investment products.
What is known about PJSC “Ukrgasbank”
- Full name: Public Joint Stock Company “Ukrgasbank”
- Founded: 1993
- Owner: The state represented by the Ministry of Finance of Ukraine (owns 94.94% of shares)
- Head office: 19 B. Khmelnytskoho St., Kyiv, Ukraine
- NBU license: no. 123 dated 06.10.2011
“Ukrgasbank is one of four state-owned banks in Ukraine. It is included in the list of systemically important banks determined by the NBU.
Financial indicators (as of the end of 2024):
- assets: over UAH 150 billion
- equity: about UAH 20 billion;
- profit: over UAH 3 billion per year;
- number of branches: about 170;
- number of employees: over 4,000.
“Ukrgasbank is a universal bank with a priority on green financing. It is a leader in Ukraine in financing environmental and energy saving projects.
It provides services to private and corporate clients: deposits, loans, guarantees, documentary operations, and payroll projects.
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