Russia's top lender Sberbank said on Thursday it was initiating investment arbitration proceedings against Ukraine after its parliament approved a presidential decree allowing for the forced seizure of Sberbank-owned assets in the country.

Ukraine's parliament, or Rada, on Thursday approved President Volodymyr Zelenskiy's decree that allows Ukraine to forcibly seize the assets of Sberbank-owned International Reserve Bank, news agency Interfax Ukraine reported.

The decree also allows the seizure of a subsidiary of Russian state development bank VEB, Prominvestbank.

"Sberbank initiates investment arbitration against Ukraine claiming damages," the bank said in a statement, referring to a 1998 agreement on the mutual protection of investments between the two countries.