Vladimir Romanov's Ukio Bankas in crisis OPERATIONS at the bank controlled by Hearts owner Vladimir Romanov have been temporarily suspended, after the Lithuanian authorities ruled that it had taken too many risks and engaged in unacceptable behaviour. Ukio Bankas has been placed in temporary administration by the central Bank of Lithuania, after its value slumped to an eight-year low and investors speculated about the unprofitable lender's perilous state. Shares in the bank fell as much as 16 per cent yesterday in Vilnius, the biggest drop in a single day since February 2000. The company's value of €32.9 million (£28.2m) is less than half what it was a year ago. Last night, Hearts director Sergejus Fedotovas insisted the club was unlikely to be affected by the bank crisis. The Edinburgh club is controlled by Ukio Banko Investicine Grupe (UBIG) - a separate firm that invests in mining and other sectors - to which Hearts owes about £22.4m. Hearts started having severe financial troubles in November 2011, when it was unable to pay the players" wages on time. The club only recently settled the outstanding balance on a £450,000 tax bill that threatened to sound the death knell at the end of last year. And the Tynecastle club has a few more months to wait to learn if it has been successful in its fight to avoid paying around £1.75m to HM Revenue and Customs in a separate case of unpaid tax. Yesterday, it emerged Ukio Bankas could issue a recall on its debts, but it is not yet known how UBIG will be affected. Mr Fedotovas said: "UBIG is an entirely separate entity and stands alone from Ukio Bankas. At a service and operational level, Ukio Bankas does provide the club with some banking services and debt facility, and the board is liaising with Ukio Bankas on these matters. The supporters of Hearts can be assured that the board of the club continues to be diligent in financial matters and we believe that today's events in Lithuania will have very little affect on our day-to-day business. Ukio Bankas, the sixth-largest lender in Lithuania, has been hit by investor concerns about the quality of its loans, the valuation of real estate it owns, and investigations into alleged laundering of embezzled Russian money through its accounts. A statement from Lithuania's central bank said that during the inspections between December and last month, it was established that Ukio Bankas performed "risky activities" and "inappropriately assessed credit risks." It also failed to make sure customers would be able to repay loans, and "applied unacceptable methods of portraying transactions in accounting." Bank of Lithuania chairman Vitas Vasiliauskas said that "a lot will depend on the actual financial standing of the bank," but that it intended to restructure operations to allow the bank to continue serving clients. Romanov, who bought Hearts in October 2005, owns 64.9 per cent of bank Ukio Bankas. Last year he announced he was unwilling to invest any more cash in the club. It benefited from an annual subsidy in the region of £8m at one stage. Despite reassurances from the club, Derek Watson, chairman of the Hearts Supporters Trust, said fans were largely in the dark. He said: "It's early days and the Hearts accounting situation is so complicated. In the accounts each year, auditors put a note in saying it's very hard to know what's going on. It has always been pointed out that UBIG and Ukio are separate entities, so I accept that. What I don't know is the link between the two - nobody seems to know that. Mr Watson added that he did not believe the club's plight was any worse than before. He said: "I don't think it changes the overall situation, which is that the supporters are the main people keeping the club going at the moment." Lord Foulkes, a Labour peer and former chairman of Hearts, said directors, including Mr Fedotovas, needed to clarify the club's exposure when they fly to Edinburgh this weekend. He told The Scotsman: "It is very complex, and while I don't think there is an immediate threat to the club, we need to find out more about what's happening in Vilnius and the relationship between Ukio and UBIG. The club was looking very rocky last year, but the fact that Hearts fans had contributed £1m to keep it going shows the strength of the support for it. The suspending of operations at banks in Lithuanian is relatively rare. However, Snoras Bankas, majority controlled by former Portsmouth owner Vladimir Antonov, was closed down in 2011. Antonov is awaiting extradition from the UK over alleged asset-stripping of the bank. Hearts fans don't need to worry too much, says auditing expert Neil Patey, a partner at auditors Ernst & Young in Edinburgh and a former adviser to Chelsea owner Roman Abramovich, said: "On the face of it, this news is not necessarily an immediate concern to Hearts. According to the most recent accounts from June 2011, Hearts was due £24 million to UBIG, a separate company from Ukio Bankas. When Hearts was first acquired in 2005, UBIG was owned by Ukio. Several years ago, however, they split, so while there are some common shareholders it shouldn't impact on UBIG. Mr Patey added: "Hearts were heavily reliant on about £8m per year from them [UBIG] at one stage, but that all stopped last summer, when Romanov said that enough was enough and he wasn't investing any more. And as we know, the club is now having to rely entirely on their own means. While we will be awaiting more information coming out, what we know today appears to suggests Hearts fans should not worry too much at this stage.