VEB said about the possible financial risks in connection with the situation in Ukraine

© RIA Novosti / Vitaly to Belowaverage in photobacteria of Vnesheconombank. Archival photoVEB said about the possible financial risks in connection with the situation in Ukraine© RIA Novosti / Vitaly to Belowaverage the image Bank

Risks in connection with the situation in Ukraine affected the credit Bank of 65.6 billion rubles, the further possible deterioration of the situation in the country may adversely affect the financial results of the Bank, reported in the financial statements of the Corporation under IFRS.

«The group’s management believes that as at 30 June 2017 the risk of the occurrence of the effects caused by the situation in Ukraine, subject to Vnesheconombank loans granted to third parties for the purchase of securities and financing of the metallurgical industry of Ukraine, carrying value before deduction of allowance of 65.6 billion rubles (31 December 2016: 67,3 billion rubles). On 30 June 2017 and 31 December 2016 for such assets, the impairment is 100%,» — said in statements.

«The group continues to monitor the situation in Ukraine and to take appropriate measures to minimize the effect of impacts from these risks. Further possible deterioration of the current situation in Ukraine may adversely affect results of operations and financial position of the group, and the effect of this impact is currently difficult to determine,» the report says.

At 30 June 2017 the net assets of the subsidiary Bank of Vnesheconombank and Prominvestbank, Ukraine, net intra-group loans granted amount to 23.5 billion rubles. Also the risk of the group attributable to Ukraine, as at 30 June 2017 is included under assets in the amount of 13.6 billion rubles. On June 30, 2017 a specified asset, the impairment is 100%, follows from the statements.

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