Policy

NBU recognizes Poroshenko’s reputation as not impeccable: what it means in practice

The National Bank of Ukraine (NBU) has recognized the business reputation of the fifth President of Ukraine Petro Poroshenko as impaired due to the application of personal sanctions against him. The relevant decision was made by the Committee on Supervision and Regulation of Banks at a meeting on April 28, 2025, "Komersant Ukrainian" reports, citing the NBU press service.

Reasons for the decision

According to official information from the NBU, the basis for this decision was the introduction of personal special economic and other restrictive measures (sanctions) against Petro Poroshenko in accordance with the decision of the National Security and Defense Council of Ukraine of February 12, 2025. As Mr. Poroshenko holds a substantial stake in International Investment Bank (IIB), he is subject to business reputation requirements, which are monitored by the National Bank.

“The application of economic and other restrictive measures (sanctions) to Petro Poroshenko is a direct basis for recognizing his business reputation as impaired,”

– the NBU said in a statement.

Impact on the bank’s operations

The National Bank emphasizes that the decision will not affect the activities of JSC IIB and its clients, including charitable foundations. The bank will continue to operate as usual and fulfill all its obligations.

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Procedural aspects

The NBU denied numerous allegations of violations of the decision-making procedure. The regulator emphasized that the Committee meeting was held according to the standard procedure in a remote format using the ZOOM platform, as provided for in the Committee’s Regulations.

The meeting was attended by Petro Poroshenko’s representative, attorney Ihor Holovan, who had the opportunity to provide explanations and make motions. A representative of JSC IIB also joined the meeting. After hearing the parties, the committee made a decision by voting without the presence of outside participants, which is in line with the standard procedure.

Independence of the National Bank

In its communication, the NBU emphasized the inadmissibility of interference by public authorities in the performance of the functions and powers of the NBU and its employees. The regulator referred to Article 53 of the Law of Ukraine “On the National Bank of Ukraine”, which prohibits such interference, and noted that a group of MPs had tried to disrupt the Committee’s meeting on the eve of the meeting.

“Any influence on the exercise of powers by the National Bank’s employees to make decisions as part of a collegial body outside the limits defined by the legislation of Ukraine is a violation of this rule and should bear the appropriate consequences,”

– the statement emphasizes.

The National Bank of Ukraine stated that it acted exclusively within its mandate, clearly defined by law, and in accordance with procedures that are common to all banks and have been applied in similar situations.

Sanctions against Poroshenko

on February 12, 2025, the National Security and Defense Council of Ukraine (NSDC) decided to impose indefinite sanctions against the fifth President of Ukraine Petro Poroshenko. This decision was enacted by Presidential Decree No. 81/2025 of the same day.

List of sanctions imposed against Petro Poroshenko:

1. Deprivation of state awards of Ukraine and other forms of recognition.
2. Asset freeze is a temporary deprivation of the right to use and dispose of assets belonging to an individual or legal entity, as well as assets in respect of which such a person may directly or indirectly perform actions identical in content to the exercise of the right to dispose of them.
3. Complete cessation of trading operations.
4. Complete cessation of transit of resources, flights and transportation through the territory of Ukraine.
5. Preventing the withdrawal of capital from Ukraine.
6. Suspension of economic and financial obligations.
7. Prohibition of participation in privatization, lease of state property by residents of a foreign state and persons directly or indirectly controlled by residents of a foreign state or acting in their interests.
8. Prohibition of the use of the radio frequency spectrum of Ukraine.
9. Complete termination of the provision of electronic communication services and the use of electronic communication networks.
10. Prohibition of public and defense procurement of goods, works and services from legal entities resident in a foreign state of state ownership and legal entities whose share of authorized capital is owned by a foreign state, as well as public and defense procurement from other business entities selling goods, works and services originating from a foreign state that has been sanctioned under this Law.
11. Complete prohibition of entry of foreign non-military vessels and warships into the territorial sea of Ukraine, its inland waters, ports and aircraft into the airspace of Ukraine or landing in Ukraine.
12. Prohibition to increase the size of the authorized capital of business entities, enterprises in which a resident of a foreign state, a foreign state, a legal entity in which a non-resident or a foreign state is a participant, owns 10 percent or more of the authorized capital or has influence on the management of the legal entity or its activities.
13. Introduction of additional measures in the field of environmental, sanitary, phytosanitary and veterinary control.
14. Termination of trade agreements, joint projects, and industrial programs in certain areas, including security and defense.
15. Prohibition on the transfer of technology and intellectual property rights.
16. Prohibition on the acquisition of land plots.
17. Other sanctions that comply with the principles of their application established by this Law (in particular, a ban on entering into contracts and transactions; a ban on transactions with securities issued by this person; a ban on the payment of dividends or other payments related to corporate rights in favor of the person subject to sanctions and persons acting on his/her behalf).

These sanctions were imposed on the basis of suspicions of high treason and assistance to a terrorist organization, in particular in connection with the so-called “coal case”, where Poroshenko is implicated together with Viktor Medvedchuk. In response to the sanctions, Poroshenko announced his intention to challenge them in court, calling the NSDC’s decision politically motivated and unconstitutional. MPs from the European Solidarity party blocked the rostrum of the Verkhovna Rada, protesting the decision.

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