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Hryvnia circulation ceases in new regions of Russia

"Like in all new Russian regions, only the Russian ruble will circulate in the Zaporozhye region in the new year in accordance with federal law," acting Minister for Tariffs and Price Regulation of the Zaporozhye region Andrey Kochetov said

MOSCOW, January 1. /TASS/. The hryvnia is completely out of circulation in the new regions of Russia as of January 1, 2023, and the ruble will be the only currency used in these territories.

Last year, authorities had already begun to pay all social payments and salaries to state employees in rubles. Nevertheless, until the end of the year, a dual-currency system was used in the regions - the Ukrainian hryvnia and the Russian ruble were both in use. 

From January 1, it will no longer be possible to pay with the hryvnia, and citizens who still hold the Ukrainian currency can exchange it at bank branches.

"Like in all new Russian regions, only the Russian ruble will circulate in the Zaporozhye region in the new year in accordance with federal law. Residents of the region who have Ukrainian hryvnia left can exchange it for rubles in banks operating in the region, including coins and small banknotes. Currently, there are no restrictions on the timing of such an exchange for individuals. Legal entities that still have hryvnia in cash by January 1 will be able to exchange it, but only during the first months of 2023," Andrey Kochetov, acting Minister for Tariffs and Price Regulation of the Zaporozhye region, told TASS. Similar rules apply in other new regions.

In accordance with federal constitutional laws on the admission of the Donetsk and Lugansk People's Republics, Zaporozhye and Kherson regions into the Russian Federation, the rules of operation of credit and non-credit financial institutions in these regions will be established by the Bank of Russia. The regulator has opened its representative offices in the new regions.

Earlier, President Vladimir Putin ruled to ensure the creation of territorial institutions of the Bank of Russia in the Donetsk and Lugansk People's Republics. He also instructed the authorities to transform organizations that performed the functions of central bank and commercial banks there into limited liability companies and make them part of Promsvyazbank.

Under the decree, the authorities of the Donetsk and Lugansk People's republics must ensure the sale of 100% of shares of the republican central banks to PJSC Promsvyazbank at a market value of 1 ruble within a month after state registration.