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    Russia's Sberbank Subsidiary in Ukraine Reportedly Sold for $130 Million

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    Ukrainian subsidiary of Russia's Sberbank has been sold for slightly less than its own capital, about $130 million, media reported Wednesday citing own sources.

    MOSCOW (Sputnik) — On Monday, Sberbank said in a statement that Latvia's Norvik Banka and a Belarusian company would buy 100 percent of shares of the subsidiary.

    Russia's Kommersant newspaper reported that according to the results of the international accounting in January-September 2016, subsidiary's own capital was at $144 million.

    The newspaper added that Sberabank led the negotiations with these investors since late 2016. Initially, a larger price was announced but it has been affected by one-year sanctions from Kiev and blocking of its offices by the radicals.

    Earlier in March, Ukrainian President Petro Poroshenko approved the Ukrainian National Security and Defense Council's proposal to impose one-year sanctions on subsidiaries of five Russian state banks, including Sberbank and VTB. The subsidiaries are no longer able to take assets out of Ukraine.

    National Bank of Ukraine Deputy Governor Kateryna Rozhkova later stated that all Russian banks partly owned by the government were looking to sell their Ukrainian subsidiaries.

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    sale, Sberbank, Ukraine, Russia
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