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Russia’s Central Bank makes 10 Ukrainian banks leave Crimea

Among reasons for the campaign, the Central Bank named the non-fulfilment of liabilities to creditors and depositors

Clients try to get into Privatbank in Crimea in April 2014 AP Photo/Alexander Polegenko

Clients try to get into Privatbank in Crimea in April 2014

© AP Photo/Alexander Polegenko

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Crimea enters the rouble zone

MOSCOW, June 02. /ITAR-TASS/. The Central Bank of Russia (CBR) has made another 10 Ukrainian banks leave the Russian Republic of Crimea over their non-fulfilment of liabilities to creditors and depositors, the mega-regulator stated.

Notably, the CBR decided to make Pivdenny Bank, Ukrgazbank, Kreshchatik, Ukrainian Innovation Bank, State Export-Import Bank of Ukraine, Finbank, Pivdencombank, Evrogazbank, Pireus Bank MKB and Brokbiznesbank quit the Russian republic.

Since late April, the CBR stated about the shutdown of Ukrainian bank offices in Crimea. On April 21, the regulator ruled to halt Crimea’s operation of 4 banks, namely the largest Ukrainian commercial bank Privatbank, Ukrainian Joint Stock Bank, Imexbank and Kievan Rus Bank, on May 13 another 6 banks, namely Terra Bank, Finrostbank, Finances and Credit Bank, commercial bank Financial Initiative, Aktsent-Bank, Avant-Bank, and another 9 banks, namely Oshchadbank, Marfin Bank, Ukrsotsbank, UkrSibbank, Delta Bank, City Commercial Bank, Forum Bank, Avtokrazbank, Platinum Bank, on May 26.

The CBR named among reasons for this campaign the non-fulfilment of liabilities to creditors and depositors under Article 7 of the April 2, 2014 federal law on functioning of the financial system in the Russian Republic of Crimea and the Russian Crimean federal city of Sevastopol in the transitional period.

Before Crimea’s accession to Russia, 77 banks had operated in the republic. Their total network numbered 1,087 offices and 11 affiliates. Meanwhile, 2 independent Crimean banks, namely Morskoy Bank and the Black Sea Bank of Development and Reconstruction had operated in the republic.

The Ukrainian National Bank banned Ukrainian banks from working in Crimea on May 6, and several lending organizations had left the region, including an affiliate of the largest Russian public savings banks Sberbank.

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