The Prague City Court declared Sberbank CZ, a subsidiary of the Russian Sberbank, bankrupt, Ukrinform reports with reference to Radio Prague International.

Late July, the Prague City Court launched proceedings in the Sberbank CZ bankruptcy case. The bank is insolvent and, according to June’s data, it has overdue liabilities of more than 61 billion kroner (EUR 2.3 million).

"During bankruptcy, the debtor's assets are sold, and the proceeds are distributed among his creditors," the report reads.

On October 6, the court will hold a second hearing on the lawsuits filed by creditors. On the same day, as follows from the data filed with the insolvency register, a creditor meeting will be held.

In early May, the Czech National Bank (CNB) revoked Sberbank CZ’s banking license, after which the Prague City Court took appropriate measures to liquidate the bank.

With measures to revoke the license, the Central Bank of Ukraine reacted to the deterioration of the situation in the Sberbank subsidiary due to the outflow of deposits in the wake of a Russian invasion of Ukraine.

In July the European Union extended sanctions against the Russian Sberbank as part of the seventh package of economic restrictions, Ukrinform reports.