Explanations as to the customs inspection of the Bank executives

We regret to state that on June 2 and 3 a number of Latvian mass media published negative and misleading information directly or indirectly related to Yurii Rodin, the majority shareholder of Pivdenny Bank (Ukraine) and Regional Investment Bank (Latvia). This information was later republished by some of the Ukrainian media.

With all responsibility we declare that none of the leased aircrafts with Yurii Rodin onboard has ever been searched by customs or law enforcement officials at the Riga airport. We also confirm that Yurii Rodin has always crossed the state border of Latvia in compliance with all the rules and regulations regarding the objects to be declared. Moreover, all his actions were always aimed at carefully following the rules. None of the shareholders of Pivdenny Bank has ever been related to the operations with illegal money.

It is also important to mention that Regional Investment Bank (RIB) has never been fined for circumventing any sanctions, as reported by some media.

Regional Investment Bank was ranked 9th and 10th by assets and capital among 17 banks registered in Latvia by the end of 2018. The Bank is among the only three financial institutions in Latvia that submitted audited financial reports for year 2018 in a timely manner, confirming both its financial stability and the viability of the new development strategy.

RIB is part of the Pivdenny Bank Group with assets exceeding USD 1 billion.

Explanations as to the customs inspection of the Bank executives

Pivdenny Bank kindly provides explanations as to the situation which arose in May 2019 during customs and border control of the following Bank executives (who were going on a business trip) at the state border of the Republic of Latvia: Yurii Rodin, Majority Shareholder and Beneficial Owner of Pivdenny Bank and Regional Investment Bank, and Alla Vanetsiants, Chairperson of the Board of Directors of Pivdenny Bank. 

In compliance with the legal requirements, customs officers performed an inspection of the declared cash funds carried by the bank representatives. It was decided by the Latvian public bodies to conduct an in-depth investigation of the origin of the funds, which involves, in addition to the full package of documents provided by the declarants, forwarding separate requests to the Ukrainian public bodies.

Both Yurii Rodin and Alla Vanetsiants are working hand-in-hand with Latvian public bodies and providing all the necessary additional documents in order to confirm the lawful origin of the funds they had with them when crossing the border. All actions take place within the framework of applicable laws and in compliance with the prescribed procedures.

At the same time, it is worth noting that neither EU nor Latvian or Ukrainian regulators have provided any remarks or comments as to this situation, Regional Investment Bank or Pivdenny Bank.

Pivdenny Bank is focused on ensuring a transparent and fair trial of the case and will be additionally informing about its progress.

Additionally

Regional Investment Bank ranks 9th and 10th in terms of assets and capital among 17 banks registered in Latvia as of the end of 2018. The Bank is among the top three financial institutions that submitted audited financial statements on time, confirming both its financial stability and the viability of its new development strategy. Regional Investment Bank is a Pivdenny Bank Group bank with its total assets estimated at more than USD 1 bln. 

Pivdenny Bank is a universal Ukrainian bank established in 1993 with its head office in Odesa. The Bank offers a wide range of services for corporate and retail clients nationwide through a regional network, which included 95 branches in 18 Ukrainian regions as of the end of December 2018. In 2018, Pivdenny Bank’s net profit amounted to UAH 274 million, which was more than five times higher than the same figure last year.