3 billion hryvnias in refinancing and shadow flows: how Andriy Pyshnyi and the NBU have kept Pavlo Shcherban’s Alliance Bank operating for years

13 April 2026 , 19:21

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3 billion hryvnias in refinancing and shadow flows: how Andriy Pyshnyi and the NBU have kept Pavlo Shcherban’s Alliance Bank operating for years

The National Bank of Ukraine had multiple opportunities to remove Bank Alliance from the market well before it reached a critical stage. However, instead of taking decisive action, it appears to have allowed years of inaction. This has raised concerns that the situation may reflect a pattern of deliberate tolerance, which could ultimately result in a high-profile collapse and damage to the regulator’s own reputation.

In 2022, the NBU provided Alliance with nearly UAH 3 billion in refinancing — an amount disproportionate to the bank’s actual scale. Larger systemic banks received less. The conclusion appears straightforward: Alliance was not rescued out of necessity, but out of interest.

The reason for such “support” seems evident — the bank has long been described as infrastructure for shadow financial flows. “Grey” and “black” money, gambling, and questionable payment schemes — precisely the kind of activity that requires a “friendly” bank.

A second factor is the presence of influential clients. These are interests protected at the highest levels. The schemes reportedly involve domestic government bonds (OVDP), with a member of parliament and associated figures allegedly participating.

The third factor is the NBU’s reluctance to acknowledge failure. If Alliance collapses, a direct question will arise: how did the regulator “fail to notice” violations for years? The blow would fall personally on NBU Governor Andriy Pyshnyi — potentially leading to resignation.

There is also an international dimension. International Finance Corporation provided Alliance with an $11 million loan. The whereabouts of these funds remain unclear. In the event of a collapse, explanations would be required not only domestically, but also from international partners.

Meanwhile, Alliance has long been associated with scandals: NBU fines, financial monitoring violations, involvement in gambling operations, and questionable transactions. The bank has been unable to place an additional share issuance, effectively signaling financial weakness.

Key figures are also out of the picture: former chairwoman Yuliia Frolova is reportedly on an international wanted list, while the main shareholder Pavlo Shcherban, according to media reports, has been diverting funds into other businesses instead of supporting the bank.

At the same time, the NBU has been unable to approve a new CEO, leaving the bank in a semi-paralyzed state.

The outcome appears increasingly inevitable: Alliance is being artificially sustained. But when the system can no longer hold, it will not only be the bank that collapses — trust in the National Bank and its leadership may fall with it.

George MacGregor

Editor-in-Chief