Alfa-Bank Ukraine's additional capitalization for $1 billion at the expense of shareholders who fell under European sanctions is proposed to be carried out in the form of a "perpetual subordinated loan", Roman Shpek, the head of the bank's supervisory board, said.

"There was no 'perpetual subordinated loan' instrument in the country. This money is in the form of an eternal debt that is never repaid, interest can be paid on it, but this is a subordinated loan that goes into Tier 1 capital," he said in an interview with Interfax-Ukraine.

"There is no other tool. Firstly, it is wartime, and secondly, because of sanctions, we cannot enter the markets,"” Shpek said.

The banker found it difficult to predict in what terms the necessary permission from European regulators could be obtained in practice and additional capitalization could be carried out in practice.

"Because this is the first time this path has been taken, no one knows how long it will take," he explained.

According to Shpek, if this happens in half a year, then it will be "normal," while such terms as a year are not considered.

He clarified that at present the bank's appeal with the necessary confirmations from Mikhail Fridman and Petr Aven is in the legal directorate of the Council of Ministers of the European Union, which deals with sanctions issues.

"Now we plan to hold working meetings at the end of this month or the beginning of the next, when they are ready to talk to us, in those authorized bodies of the Council of the European Union," he added.

He clarified that since the funds are on the accounts of a British bank, but in a branch in the EU, the decision to lift sanctions for $ 1 billion for additional capitalization of the bank is made in the EU.

"If it were in the UK or the US, the procedure would be simpler. Since in the EU, decisions must be made by representatives of all member countries. In addition, the US has a precedent for adjusting sanctions, while the EU does not," Shpek said.