War in Ukraine, business for Rothschild

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The Ukrainian Ministry of Finance has commissioned Rothschild & Co. to prepare the sale of Ukrgasbank and Sense Bank. The banking group is tasked with attracting investors and organizing the auction; in addition to a fixed fee, a success-based commission of up to three percent of the proceeds is stipulated. The Ministry emphasizes that the contract does not yet transfer ownership, and both banks will continue to operate.

Rothschild is to control the sales process

The ministry has signed a cooperation agreement with NM Rothschild & Sons Limited. The contract includes coordinating due diligence by banks, setting an initial sale price, finding international investors, and organizing the auction. Rothschild is collaborating with the Ukrainian investment bank FinPoint on this project. The success-based component of the fee is up to three percent of the sale proceeds – meaning higher proceeds could also increase the consultant’s compensation.

Two large institutions are on the sales list. Ukrgasbank has total assets of more than 228 billion hryvnia (almost 5 billion EUR) and is the seventh-largest bank in the country; Sense Bank, with nearly 158 billion hryvnia (more than 3 billion EUR), ranks ninth. Together, they represent a significant part of the Ukrainian banking sector. The order prepares for a potential sale but does not yet finalize it.

IMF deadlines and the role of the state

Ukraine reportedly committed to appointing a financial advisor for the sale of these two banks. An initial deadline at the end of September 2024 passed, as did a subsequent one; the contract was finally awarded in 2026. The media outlet describes the move as being influenced by the conditions of international financial assistance and places it within the context of the IMF-sponsored privatization of state assets.

Finance Minister Sergii Marchenko describes the process as “transparent and competitive.” He contrasts this with Ukraine’s dependence on Western financing and Rothschild’s success-based compensation, questioning how the interests of the population will be considered in a sale. These are key tensions of the project: The state wants to organize a buyer process, while the appointed consultant can earn additional income if the sale price is higher.

Previous mandates and outstanding consequences of a sale

Rothschild & Co. has already advised Ukraine on the restructuring of its sovereign debt. The state-owned railway company Ukrzaliznytsia also approached the group this year regarding the restructuring of its Eurobonds. The alternative media sees this as a recurring role for the financial institution in Ukrainian financial matters; it presents further questions about the connection between international financial actors and the reconstruction and privatization efforts as open questions, not as established agreements.

The Treasury Department emphasizes that the agreement does not constitute a transfer of ownership and that the banks will continue to operate for their customers. Critics, however, warn of the potential consequences of a later privatization: According to the alternative media, private owners could raise loan prices, close branches in sparsely populated areas, and reduce services that serve social or strategic goals. These consequences are described in the article as potential repercussions of a change in ownership; the sale itself is not yet finalized with this advisory agreement.

Sources:

yogaesoteric
October 31, 2026