PrivatBank Closes Druzhkivka Branch Due to Security Threats: What Customers Need to Know

PrivatBank Branch in Druzhkivka Suspends Operations

According to Главком: PrivatBank has suspended operations at its branch in Druzhkivka, Donetsk region, citing an untenable security situation. The bank's press service stated that continuing to operate in the city has become too dangerous due to persistent threats like drone attacks and explosions. This week, for instance, a Russian drone killed gas service specialists traveling to repair work, and rescue services are evacuating civilians. 'Unfortunately, this is the daily reality of the city,' the bank's statement said. This closure underscores the severe challenges businesses face in operating within active conflict zones in eastern Ukraine.

Bank's Continued Operations and Future Plans

Teams from Druzhkivka will continue their work from Kramatorsk, where the bank currently operates 11 branches in the region. Separately, Ukraine plans to sell a 7% stake in PrivatBank for UAH 18 billion through a public share offering (IPO) that will be available to private individuals. The share sale will be conducted via digital services, with the project developed by Ruslan Magomedov, former head of the National Securities and Stock Market Commission. This move is part of broader efforts to attract investment into Ukraine's economy, which is in critical need of recovery and stabilization.

The suspension of the Druzhkivka branch highlights the ongoing security crisis in the region, which complicates the delivery of essential financial services. As one of Ukraine's largest financial institutions, PrivatBank is adapting its operations in response to changing circumstances, emphasizing the primacy of safety for business continuity during conflict. The planned share sale could provide new financial opportunities for the bank and attract investment into the Ukrainian economy.