Russia’s Central Bank (CBR) has approved the plan of the deposit insurance agency participating in prevention of Moscow commercial bank Moskomprivatbank’s bankruptcy. According to the approved plan, the deposit insurance agency will inspect financial situation in Moskomprivatbank.

“For the period of work of provisional administration, powers of stockholders of the crediting organization related to participation in the charter capital and powers of governing bodies are suspended,” the CBR said in a statement.

The financial regulator also noted that the bank continued working in the routine mode, and all clients including bank depositors can use its services.

“The CBR proceeds from the assumption that fulfillment of the approved measures will provide for continuous Moskomprivatbank’s services to its clients,” the CBR said at its website.

Provisional administration will be working in the bank for ten days starting on March 6, Itar-Tass reported earlier.

The provisional administration works under Article 21 of the federal law on bankruptcy of crediting organizations. According to this article, provisional administration has functions to conduct an inspection in the crediting organization and control its property management within framework set in this article of the law.

According to Article 74 of the law on the Central Bank of Russia, if a bank failed to fulfil the CBR decree to eliminate the violation timely, the financial regulator can appoint provisional administration to manage this bank for up to six months.

Moskomprivatbank is a subsidiary of Ukraine’s Privatbank which is owned by Ukrainian business tycoon Ihor Kolomoyskyi. Russian President Vladimir Putin described Kolomoyskyi, who was appointed as governor of central Ukraine’s Dnipropetrovsk region, a swindler. “He is just a unique swindler, he even made a fool of our oligarch Abramovich,” Putin said. According to the president, Kolomoyskyi has defrauded Abramovich for several billion dollars 2-3 years ago.

Moskomprivatbank provides retail services. In early March, the amount of deposits of individuals in the Moscow bank has reached around 32.4 billion rubles ($896.8 million), bank assets stand at 48.17 billion rubles ($1.3 billion).