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Developments in eastern Ukraine

Lugansk Republic to use three currencies

"We shall process minor operations in hryvnias and roubles, and bigger operations - in dollars," the LuganskInformCentre news agency quoted the republic’s head Igor Plotnitsky

MOSCOW, 7 March. /TASS/. The self-proclaimed Lugansk People’s Republic (LPR) will use three basic currencies - hryvnias, roubles and U.S. dollars, where big operations will be made in dollars, the republic’s head Igor Plotnitsky said on Saturday.

"We shall process minor operations in hryvnias and roubles, and bigger operations - in dollars," the LuganskInformCentre news agency quoted him.

"For the time being this is what we shall have, though, according to the poll results, most people would rather prefer rouble," he said.

The republic’s head said all retail stores should have two currencies quoted on price tags.

On Friday, the official said authorities were considering a possibility of making social payments, including salaries and pensions, in roubles after prices stabilize.

"Ukrainian currency is in use. We will have both rouble and hryvnia in use. The people themselves will decide what is better. The majority of LPR residents want to use roubles only," Plotnitsky said.

"The hryvnia plunged in one night. There is an unannounced default in Ukraine. LPR residents are ready to use the rouble," he added.

However, growth in prices is expected in LPR in the nearest future due to the unstable economic situation, Plotnitsky said.

"The market will show what prices are appropriate. So, we expect a growth in prices, but later everything will go back to normal. Then, salaries and pension will be paid in rubles. Only rubles will be used in stores," he added.

At the end of February, LPR adopted a multi-currency financial system due to hryvnia’s plunge and continuing economic blockade of Donbass by Kiev.

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