11:07 14.10.2022

Alfa-Bank Ukraine shareholders ready to capitalize it by $1 bln or donate it to state - Fridman

2 min read
Alfa-Bank Ukraine shareholders ready to capitalize it by $1 bln or donate it to state - Fridman

The shareholders of Alfa-Bank Ukraine confirm their readiness to capitalize it by $1 billion, however, in the event of a decision by the government or the National Bank on the need to transfer control in the bank to the state or another shareholder, they are ready to donate its shares, according to a letter from co-owner of the bank Mikhail Fridman to NBU Governor Andriy Pyshny.

"In our opinion, private investment is the best option ... At the same time, if the government or the National Bank is inclined to the decision that Alfa-Bank Ukraine should be controlled by the state or another shareholder, we are ready to transfer the bank's shares free of charge," the statement says.

Fridman explains the need for such an appeal with a coordinated media attack against the bank and loud statements in the press about its future, causing concern for customers.

According to him, meetings of the bank's representatives with the EU regulatory authorities are to be held in Brussels in October regarding the possibility of practical implementation of additional capitalization by $1 billion at the expense of funds frozen by sanctions.

"We believe that in this situation this is an absolutely correct, loyal, responsible behavior in relation to the bank, clients, the country, taking into account the investments necessary to restore the infrastructure of Ukraine. The entire banking system will inevitably face the need for additional capitalization. The question is at whose expense this will be done - private investors or the state," Fridman said.

In his opinion, such additional capitalization will be a good and bold example for other investors.

"I would like to note that we have never identified investments in the bank's capital with the lifting of personal sanctions. We are very sorry that the information was distorted in Ukraine," Alfa-Bank Ukraine's shareholder added.

At the same time, he said that the shareholders would respect the decision of the state authorities to transfer control over the bank to the state or another shareholder and would not appeal the decision in the courts.

"We will do our best to make the transition period seamless for customers," Fridman stressed.

He recalled that over 20 years of operation of Alfa-Bank of Ukraine, its shareholders have invested more than $1 billion in the bank without paying a single hryvnia of dividends.

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