Milkiland, a dairy group with assets in Ukraine, Russia and Poland, will take all every legal step required to withdraw deposits of EUR 4.4 million and UAH 92.836 million (equivalent of EUR 3.948 million) from insolvent public joint-stock company Ukrainian Professional Bank (UPB, Kyiv), however these assets may appear unrecoverable and the deposits shall be reclassified as doubtful debts.

The holding company of the group, Milkiland N.V. (the Netherlands) said on the Warsaw Stock Exchange (WSE) that these short-term deposits were placed with UPB by the Ukrainian subsidiaries of the company.

"Although the company and its subsidiaries shall take all required legal action to withdraw these deposits, these assets may appear unrecoverable, and the abovementioned deposits shall be reclassified as doubtful debts and a 100% provision shall be charged thereon," reads the report.

As reported, the National Bank of Ukraine (NBU) on August 28, 2015, at the proposal of the Individuals' Deposit Guarantee Fund, decided to revoke the banking licenses of and liquidate UPB and Bank National Credit. According to the NBU, the two banks failed to fulfill their financial recovery plans after placing them in the category of problematic banks, as a result UPB was classified as insolvent on May 28, and Bank National Credit was classified as insolvent on June 5.

The Individuals' Deposit Guarantee Fund from September 3 began payments to the depositors of insolvent UPB.

Ukrainian Professional Bank was founded in 1992. Its largest shareholder as of April 1, 2015 was Yevhen Balushka via Ukrainian Investment-Financial Alliance, Eurofinance LLC (Kyiv) and Lanex.Inc. (Panama) with 95.3902%.

UPB ranked 36th among 133 operating banks as of April 1, 2015, in terms of total assets worth UAH 4.55 billion, according to the NBU, although by July 1 its assets fell to UAH 1.35 billion with liabilities of UAH 1.66 billion, including UAH 790 million owed to individuals.