(MENAFN) The National Bank of Ukraine (NBU) has devised a strategy to pressure international banks with subsidiaries in both Ukraine and Russia to cease their Russian operations, as reported by Strana.ua on Monday. According to a letter from the NBU seen by the outlet, if a foreign bank does not shut down its business in Russia, the Ukrainian regulator would have the authority to take over the management of the bank's Ukrainian subsidiary.

The report stated that if the NBU determines a bank has a "flawed business reputation," the foreign shareholder could be stripped of their voting rights at meetings, effectively leading to the dismissal of the management.

The NBU's document reportedly lists nine foreign banks with subsidiaries in both Ukraine and Russia, including Austria’s Raiffeisen Bank International (RBI), Hungary’s OTP Bank, France’s BNP Paribas and Credit Agricole, Sweden’s SEB, US Citi Group, Italy’s Intesa Sanpaolo, Dutch lender ING, and Germany’s Deutsche Bank. These banks have continued operations in Russia despite Western sanctions.

To avoid punitive measures in Ukraine, the parent company of a foreign bank operating in Russia would need to begin the process of withdrawing from the Russian market, providing a detailed plan with a timeline for withdrawal. The NBU reserves the right to "take action" if the deadlines are not met.

Ukraine has previously pressured foreign companies operating in Russia, adding them to its "international sponsors of war" list, though this list was later abandoned after complaints from other countries.

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