Ukraine’s banking sector is set to get a new foreign investor after Estonia’s Iute Group won a competition to acquire a bridge bank created from the failed RwS Bank.
The near-completion of the sale would mark a rare example of foreign interest in Ukraine’s banking sector during the war.
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The deal concerns Iute Bank, a transitional lender created in December as part of the resolution of RwS Bank, which was declared insolvent by the National Bank of Ukraine (NBU) in early November after prolonged regulatory violations and risky operations.
Ukraine’s Deposit Guarantee Fund (DGF) reported the transitional bank, currently owned by the fund, is to be sold to an investor after Iute Group won an open tender. Operational preparations are underway, and the transaction is close to completion, according to the fund.
The Estonian group has submitted documents to the NBU for regulatory approval, Forbes Ukraine reported, citing a response from the central bank.
According to Forbes Ukraine, the NBU confirmed it had received Iute Group’s application package and said the materials are under review by the regulator’s relevant department.
The move follows the DGF’s decision to resolve RwS Bank through a bridge-bank structure, rather than liquidation alone, after the NBU declared the lender insolvent on Nov. 4, 2025.
The DGF launched an open competition on Nov. 10, 2025, offering several resolution options, including selling the bank to an investor, creating and selling a bridge bank, or transferring parts of the bank’s assets and liabilities to a new owner. The fund later said three parties had expressed interest.
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On Dec. 9, 2025, the fund said it had summarized the results of the competition and selected the option that met the “least-cost” principle, adding it would disclose the winner within five business days after signing an agreement.
On Dec. 31, 2025, the fund wrote that a bridge bank called “Iute Bank” had begun servicing RwS Bank depositors. Under the resolution plan, the fund created and registered the bridge bank on Dec. 17, 2025, and said it received a banking license on Dec. 24, 2025.
The fund wrote that all guaranteed liabilities to individuals, including sole proprietors, were transferred to the bridge bank in full, and depositors would not need to re-sign contracts. It also said Asvio Bank would act as a partner bank for servicing depositors who choose to withdraw funds.
RwS Bank itself is moving into liquidation. The fund said liquidation will start on Jan. 5, 2026, and last three years through Jan. 4, 2029, after the NBU decided on Dec. 30, 2025, to revoke the bank’s license and liquidate it.
RwS Bank was previously classified as problematic in July 2025. The NBU said it found repeated violations of capital adequacy ratios, weak internal controls and risk management, and submission of inaccurate reporting. In December 2024, the NBU imposed a Hr. 135.15 million ($3.3 million) fine on the bank for major anti-money-laundering violations.