BERLIN (Reuters) - The head of Russia's state development bank VEB said Western sanctions against Moscow risk endangering Ukraine's banking system because Russian banks could not give liquidity to subsidiaries there.
VEB chairman Vladimir Dmitriev told German newspaper Tagesspiegel am Sonntag the sanctions were causing considerable damage and hitting the wrong people.
The European Union and United States imposed sanctions on VEB and four other Russian state banks over Moscow's role in the Ukraine crisis, limiting their ability to raise funds on Western markets.
Dmitriev said Russian banks' Ukrainian units had had a large market share. He called the situation in Ukraine catastrophic and said four fifths of loans were not being serviced on time.
He said in September VEB will get 30 billion roubles ($600 million) from the state to boost its capital.
(Reporting by Alexandra Hudson; Editing by Ruth Pitchford)
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