Alfa-Bank recapitalization up in the air, NBU says

25 October 2022, 10:16 PM
Mykhailo Fridman, co-owner of Alfa-Bank Ukraine (

Mykhailo Fridman, co-owner of Alfa-Bank Ukraine (

The National Bank of Ukraine (NBU) hasn’t received the paperwork regarding the potential $1 billion recapitalization of Alfa-Bank Ukraine, Ukrainian news agency Interfax-Ukraine reported on Oct. 25.

“As of the date of receipt of the request (Oct. 21), the National Bank didn’t receive the paperwork for the additional capitalization of Alfa-Bank for $1 billion,” the report says.

“Once the paperwork is submitted, the NBU will evaluate it, in accordance the rules of licensing and other supervisory procedures, as legally outlined.”

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NBU confirmed receipt of a letter from Alfa-Bank, in which the bank’s owners declared their intention to increase the bank's capital.

“Maintaining the level of the bank’s capital at appropriate levels, as well as taking timely measures to prevent the bank’s insolvency is the direct responsibility of the owners of a bank – in accordance with applicable laws,” NBU noted.

Earlier media reports suggested that Alfa-Bank shareholders were prepared to provide $1 billion in additional capital for the bank – or to transfer some of its shares to the government or any other authorized shareholder. The proposal came in a letter from Russian oligarch and co-owner of Alfa-Bank, Mikhail Fridman.

Fridman reportedly hopes the offer would nudge Western countries towards easing the grip of sanctions on his assets abroad. The influx of additional capital could be done in through a perpetual subordinated loan to Alfa-Bank.

The bank has subsequently said the plan for the additional capitalization was not related to Fridman’s personal interests.

Oct. 6, the Ukrainian parliament adopted a law on the specifics of withdrawing systemically important banks from the market under martial law, which involves nationalization without additional capitalization from the state – something many experts think is directly related to Alfa-Bank.

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