In July 2023, the Ukrainian government nationalized Sens Bank, acquiring it for a nominal fee of one hryvnia. Now, plans are underway to return the bank to private ownership by 2026, amid ongoing scrutiny and controversy.
Key Developments:
- Privatization Timeline: The government aims to complete the privatization of Sens Bank, which was nationalized due to its Russian ownership, by 2026.
- Audio Recordings Scandal: Recent audio leaks have sparked public interest, revealing discussions among individuals linked to the bank regarding its oversight.
- Leadership Changes: Following media fallout from the leaks, the chair of the bank’s supervisory board has temporarily stepped down.
Sens Bank, previously known as Alfa Bank Ukraine until late 2022, was brought under state control due to its ownership by Russian oligarchs. Key shareholders, including Mikhail Fridman and Petr Aven, faced European sanctions in February 2022, which were later mirrored by Ukraine. In response to the financial instability posed by these sanctions, a special law was enacted in autumn 2022 to facilitate the state’s intervention in systematically important banks. Consequently, on July 21, 2023, the Cabinet of Ministers officially acquired all shares of Sens Bank for just one hryvnia, making it a fully state-owned entity.
The National Bank of Ukraine indicated that the sanctions against the owners posed a direct threat to the bank’s stability and the safety of its clients’ funds. With the shareholders unable to provide necessary financial support, the bank’s capital dwindled significantly—falling by 50% from March 2022 to July 2023, in stark contrast to other major banks that saw an average capital increase of 29% during the same period. This financial deterioration was a key factor in the decision to nationalize the bank.
As of October 2025, the government has initiated preparations for the bank’s privatization, aiming to reduce the state’s footprint in the banking sector and generate revenue for the state budget. The Ministry of Finance has outlined a three-step process for the sale of Sens Bank’s shares:
- Preparation of the share package for sale;
- Conducting a competitive bidding process;
- Finalizing the sale agreement.
President Volodymyr Zelensky has emphasized the urgency of the privatization, stating that it should not be delayed beyond 2026. Following a meeting with Prime Minister Yulia Svyrydenko, he reiterated the need for prompt action in this regard.
In the backdrop of these developments, Sens Bank has also been embroiled in controversy due to leaked audio recordings related to the Midas case. In November 2025, MP Yaroslav Zheleznyak claimed that these recordings implicated Sens Bank and mentioned Vasyl Vesely, who has been associated with the President’s Office. Zheleznyak suggested that Vesely acted as a ‘consultant’ to the bank’s supervisory board, a claim the bank has vehemently denied, asserting that no such advisory roles exist within its governance structure.
The controversy resurfaced in May 2026, with reports suggesting that brothers Andriy and Vasyl Vesely were allegedly gaining influence over Sens Bank and were involved in the ownership of Karpatnaftokhim, purportedly in the interest of then-Head of the Presidential Office Andriy Yermak. Journalistic investigations indicated that Vesely and another individual discussed plans to exert control over the bank’s supervisory board.
In light of the allegations, Nikolai Hladyshev, the chair of the supervisory board, temporarily stepped down to allow for a thorough investigation into the claims surrounding the bank. Piotr Novak, who joined the board as an independent member in October 2025, has taken over the responsibilities of the chair during this period.
Ukraine's government plans to privatize Sens Bank, which was nationalized in 2023 due to Russian ownership. The move comes amid financial instability and recent controversies involving leaked audio recordings related to the bank's oversight.