MOSCOW/KIEV, March 6 (Reuters): The Russian central bank said on Thursday it was putting the Moscow subsidiary of Ukraine's Privatbank into temporary administration, but that it would not revoke the bank's licence.
Russia and Ukraine are in a dangerous armed stand-off following months of unrest in Kiev and the ousting of President Viktor Yanukovich. Moscow has refused to recognise the new government in Kiev, although President Vladimir Putin has instructed his government to establish contacts.
Privatbank is a part of Ukraine's Privat group, co-founded and co-owned by Igor Kolomoisky, who was appointed by Ukraine's Acting President Oleksandr Turchinov as governor of Dnipropetrovsk region, Kolomoisky's birthplace, a few days ago.
Putin on Tuesday called Kolomoisky "a unique impostor", accusing him of violating a contract with Russian businessman Roman Abramovich.
"And such a scoundrel was made a governor of Dnipropetrovsk region," the Russian president told a press briefing in which he talked about widespread corruption in Ukraine. Putin did not elaborate which business deal between Abramovich and Kolomoisky he was referring to.
The central bank said in a statement the decision to appoint an interim administration for Moskomprivatbank, Russia's No.95 by assets according to Interfax data, was effective immediately.
"The role of the temporary administration is to oversee the lending institution and to control the disposal of its property," the central bank said in a statement.
Privatbank, founded in 1992, is Ukraine's largest. According to public information, Kolomoisky owns a 33.9 per cent stake in the bank and his business partner Gennady Bogolyubov 34.2.
Kolomoisky held just over 2 per cent in Russia's largest steel producer Evraz, of which Abramovich is the largest shareholder, as of early 2013. There is no public information available on Kolomoisky's current stake in Evraz.
Elvira Nabuillina, Russia's central bank head since last year, has started to tighten regulation of the domestic banking system, which consists of around 1,000 banks, in a wider move to tackle the shadow economy.
Since Nabuillina became central bank governor over 30 banking licenses have been revoked, notably Master Bank, which cost the state about 30 billion roubles in retail deposit insurance payments, Russia's largest pay-out to date.
