After the start of Russia’s large-scale aggression and the imposition of systemic sanctions on the Russian financial sector, the Crimean “government” promised that now powerful Russian banks will enter the peninsula, which have “nothing to lose”.

So far, only “Promsvyazbank”, one of Russia’s ten most powerful banks, has taken such direct demands from the Russian leadership. The specificity of this bank is its focus on servicing the aggressor’s military industry and its affiliation with the Russia’s Ministry of Defense.

In particular, Promsvyazbank is a “reference bank for state defense procurement operations”, it provides a significant share of the “military mortgage” market and “Roscosmos” financing.

Of course, such “commercial activity” is not effective, and although the bank’s total portfolio reaches 100 billion rubles, only in 2020 the bank “mastered” 25 billion rubles of state support, and now has to receive “recapitalization” from the budget of more than 13 billion.

In this dimension, it is not so much the complete dependence of the “Crimean financial monster” on budget funds that is noticeable, but its direct connection with the Russian army.

After all, as our Association has argued in a number of materials, all “Russian banks” operating in Crimea since 2014 are primarily a means of facilitating the theft of “budget funds” due to the lack of significant private economic activity in the occupied region.

Now it is obvious that this “feeder” is planned to be headed by the Russian military through the “Promsvyazbank” under their control.