Alexander Sosis, shareholder of Alliance Bank: The court has validated our position in the case against Ukrenergo.

On the role of the banking system in supporting Ukrainian businesses during the war, charitable initiatives, and legal challenges — in an interview with RBC-Ukraine, bank shareholder Alexander Sosys shares his insights.

— Many banks have gone through a challenging period, adapting their services and supporting clients during wartime. How does your bank support businesses and citizens during the war? Have the strategies in lending and financial support changed?

— On February 24, 2022, the worst-case scenario unfolded rapidly — a full-scale invasion, missile strikes across Ukraine. We immediately took necessary measures to protect both our staff and client data. The bank migrated all personal data to "cloud" services, enabling us to quickly implement remote service operations.

The most difficult challenge was managing the credit portfolio. We understood that clients, both businesses and individuals, would primarily focus their financial resources on safety, which led to several waves of debt restructuring. We postponed the repayment of principal and interest on loans, allowing clients to preserve their businesses and adapt to new conditions.

— You mentioned mass restructuring of loans. What specific measures turned out to be the most effective for your clients?

— One of the most effective measures was providing clients with deferrals on loan payments — both principal and interest. This allowed borrowers, particularly those from small and medium-sized enterprises, to concentrate on relocating their businesses, ensuring the safety of their employees, and maintaining production capacities.

At the same time, we actively supported clients through the government program "Affordable Loans 5-7-9%", which enabled businesses to continue their operations even under challenging conditions.

From 2022 to 2024, the bank provided loans totaling around 1 billion UAH under this program.

Additionally, we implemented special financial instruments for the agricultural sector and restructured loans for businesses directly affected by the war. For many of our clients, this has been crucial support for their further adaptation to new realities.

— The war has accelerated the development of remote service channels. How have digital technologies impacted your bank and its clients?

— The war indeed acted as a catalyst for digitization. We made significant progress in developing remote service channels by utilizing cloud services. A key achievement has been our digital bank and proprietary processing system, which ensures that services are available to clients anytime and anywhere. We launched mobile banking for individuals, allowing them to access banking services without visiting branches.

— What innovative products have been launched since the onset of the war?

— Since the war began, the bank has actively introduced several key innovative products. Firstly, our mobile application has become the main tool for individuals. Clients can now open accounts, manage their finances, and even obtain consumer loans without visiting the bank. For business clients, we developed remote service tools that enable them to manage accounts, payments, and other banking operations online.

We also launched programs for agribusiness and energy services under state and international financial initiatives. These products help enterprises continue their operations amid the energy crisis and support businesses implementing renewable energy technologies.

Overall, the bank's strategy remains unchanged — we offer a wide range of banking services for both businesses and individual clients. There have been no changes in the bank's positioning, including those resulting from the military aggression of the Russian Federation — the bank remains universal and accessible to clients. The business model and strategy have not required changes and continue to demonstrate their viability.

— Is the bank planning to launch new products or services that address client needs during and after the war?

— Yes, we are working on developing several new areas. For instance, among the key business lines for 2024-2026 are lending to small and medium-sized businesses, as well as the agricultural sector. We are particularly focusing on lending to enterprises engaged in energy services and enhancing energy efficiency.

Moreover, we plan to expand our card business in 2024. We are already broadening the range of financial services for microbusinesses, as well as offering deposits, payment cards, and insurance products for individuals.

— Do you support the changes made by the regulator in banking activities during the war? How have these changes affected the work of "Alliance" bank, and what challenges or opportunities have they created for the financial sector?

— Yes, the bank supports the actions of the National Bank of Ukraine during the war.

The Power Banking program, initiated by the NBU, which our bank joined, ensured the operation of 23 branch offices equipped with generators and communication systems. This allowed us to provide clients with access to essential banking services even during power outages and critical situations. Additionally, Power Banking served as a sort of invincibility points where people could access warmth, the internet, charge their devices, and receive necessary support.

Thanks to the stringent measures taken by the NBU, it has been possible to maintain the stability of the national currency, which has positively impacted the banking system's operations.

Maintaining low and stable inflation rates has also preserved the purchasing power of the national currency, aiding in the stabilization of the financial market.

As a result of these measures, our financial system remains stable, and the bank continues to fulfill all its functions without interruption. By the second half of 2022, we resumed lending to corporate and microbusiness sectors. In 2023, we reinstated consumer lending programs, and we plan to dedicate 2024 to the development of card products.

— You and the bank are actively engaged in charity, supporting various initiatives during the war. Which of these projects are currently a priority?

— We initiated the campaign "Let's Gather Together with Alliance for the Armed Forces of Ukraine," where part of the interest from deposits is directed to support the Ukrainian Armed Forces. We also provide targeted assistance to military units by purchasing necessary equipment. Furthermore, we continue to collaborate with foundations to implement various initiatives aimed at aiding both the army and the civilian population.

The bank regularly receives gratitude from military leadership and personnel for our patriotism, active civic stance, compassion, and significant support for Ukraine's defenders. However, undoubtedly, our greatest gratitude is directed towards the Armed Forces of Ukraine, whose selfless work and struggle allow us to think not only of our safety but also of the safety of those in need.

— Have there been any challenges in implementing charitable initiatives due to the military situation in the country?

— Certainly, the war creates additional difficulties for executing charitable initiatives. Logistical issues, security risks, and instability on the front complicate the delivery of aid to hot spots. Additionally, it is often challenging to establish a steady supply of necessary resources due to disruptions in the work of suppliers or transport companies. However, despite these challenges, we continue to support the army and assist our defenders, finding ways to overcome these barriers.

— Do you collaborate with other charitable organizations or government structures within your initiatives?

— Yes, we collaborate with many charitable organizations. One of the most significant projects is the "Forum of Good Deeds," which we initiated even before the full-scale war. This platform brings together individuals implementing charitable and social initiatives. Our bank is the main partner of this project, which annually gathers over 3000 participants and 150 speakers to discuss key initiatives.

— Earlier in an interview with RBC-Ukraine, you discussed legal cases involving the bank and "Ukrenergo." What is the current situation with this case, what challenges does the bank face in legal matters, and what are you doing to resolve them?

— Legal cases involving "Ukrenergo" are ongoing, but they do not significantly impact the bank's operations. We closely monitor all legal processes and take all necessary measures to minimize risks. The bank maintains financial stability, meets all liquidity norms, and operates in accordance with regulatory requirements.

Regarding the case with "Ukrenergo," I am pleased to report that the second instance (appellate) has confirmed our position. The court rulings indicate that "Ukrenergo's" actions were unscrupulous, and therefore the bank should not pay the claim that was created by deliberate actions from the management of NEC at the beginning of the war.

This, by the way, is linked to the hysterical reaction of our detractors, accompanied by absurd accusations on "leak" websites and ridiculous petitions to the president, where, according to the author, I am currently not in Kyiv but somewhere abroad. All this evokes anger and resentment in me. I do not know where the author of this petition is, but since mid-June 2022, I have been constantly in Ukraine, focusing on the development of "Alliance" bank.

— What impact do these legal cases have on the bank's operations? Are there risks that could affect the stability of the business in the future?

— Legal cases do not affect the stability of the bank's operations. We continue to meet all economic liquidity norms and maintain high reliability for our clients.

The bank has sufficient liquidity reserves and financial stability buffer.

As of August 18, 2023, our liquidity coverage ratio was 250.6%, significantly exceeding