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Crimea and Sevastopol

Putin signs law on financial system in Crimea and Sevastopol

MOSCOW, April 02, /ITAR-TASS/. President Vladimir Putin on Wednesday, April 2, signed the Federal Law “On Special Operation of the Financial System in the Republic of Crimea and City of Federal Importance Sevastopol during the Transition Period”.

The law sets out the special features for operation of banks, non-bank financial institutions and currency exchange offices during the transition period in Crimea and Sevastopol. The law sets out the particular provisions applying to them concerning state registration, obtaining licences, cessation of activity, and also the particular rules for circulation of securities issued by organisations located in Crimea and Sevastopol.

Banks and other financial institutions will be able to continue their activities in Crimea and Sevastopol until January 1, 2015, without having to obtain a licence from the Russian Central Bank, be included in the state register kept by the Central Bank, or admitted to a self-regulating organisation, if the institutions carry out obligations arising from earlier agreements and respect other conditions set by the federal law.

The law also sets procedures for insurance organisations operating in Crimea and Sevastopol to carry out their obligations.

Putin also signed the Federal Law “On Protection of Interests of Retail Depositors at Banks and Their Economically Autonomous Structural Subdivisions registered in and/or operating on the territory of the Republic of Crimea or the Territory of the City of Federal Importance of Sevastopol”.

The law protects the interests of individuals (including non-corporate entrepreneurs) residing on the territory of the Republic of Crimea and in Sevastopol and holding deposits at banks and their structural subdivisions registered and operating on the territory of the Republic of Crimea and Sevastopol.

To implement the law, the Deposit Insurance Agency state corporation is creating an autonomous non-profit organisation Depositor Protection Fund, which is authorised to make compensation payments to depositors by acquiring their deposit rights.

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Crimea and Sevastopol

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