KIEV, March 8 - Ukrainian authorities are threatening to impose sanctions on the local subsidiary of Sberbank, Russia's main state bank, after Sberbank said it would recognize passports issued by Russia-backed separatists in eastern Ukraine, Radio Free Europe/Radio Liberty reported.

The Ukrainian central bank (NBU) made a statement on March 7, after Sberbank said it would comply with Russian President Vladimir Putin's February 18 decree ordering Russian authorities to recognize identity documents issued by separatists who hold parts of Ukraine's Donetsk and Luhansk regions.