Cabinet approves privatization process for Sens Bank and Ukrgasbank

On October 1, the Cabinet of Ministers approved preparations for the privatization of state-owned stakes in two banks: Sens Bank and Ukrgasbank. The move aims to reduce the government’s role in the banking sector and boost budget revenues, the Ministry of Finance reported.

The size of the stakes to be offered for sale has not yet been disclosed.

The privatization process will consist of three stages: preparing the shares for sale, conducting a tender among potential buyers, and signing a sale and purchase agreement.

By the end of autumn 2025, the Ministry plans to announce a tender to select an advisor for the transaction.

The sale of stakes in state-owned banks is envisaged under a memorandum with the International Monetary Fund (IMF) to reduce the state’s footprint in the financial sector. As of the end of Q1 2025, state-owned banks accounted for 53.3% of net assets and 62.9% of household deposits.

Currently, Ukraine has seven state-owned banks: PrivatBank, Oschadbank, Ukreximbank, Ukrgasbank, Sens Bank, PIN Bank, and Motor Bank.

Ukrgasbank was nationalized during the 2008–2009 financial crisis.

PrivatBank was taken over by the state in late 2016, after it nearly collapsed.

Sens Bank, PIN Bank, and Motor Bank were nationalized during the full-scale war due to their owners’ ties to Russia.

• In September 2024, the Verkhovna Rada passed Bill No. 11474 regulating the privatization of state-owned banks. It permits the sale of any state-owned stake in a bank and broadens the pool of eligible investors.
• In 2023, the National Bank outlined a likely sequence for privatizing the largest state-owned banks: Sens Bank, Ukrgasbank, Oschadbank, and PrivatBank.