` CBR Orders Six Ukrainian Banks in Crimea and Sevastopol to Stop Trading ‘

#AceFinanceNews – MOSCOW – May 13  – The Central Bank of Russia has ordered six Ukrainian banks to stop operations in Crimea and Sevastopol starting from May 13, the regulator said in a statement.

In passing the decision, the CBR referred to Article 7 of the federal law dated April 2, 2014, on specifics of the functioning of Crimea’s and Sevastopol’s financial system during the transitional period.

Among the banks are Kiev-based Terra Bank, Odessa-based Finrostbank, Kiev-based  Bank “Finance and Credit”, Kiev’s Commercial Bank “Financial Initiative”, Dnipropetrovsk-based Accent-Bank and Kiev’s Avant-Bank.

According to the CBR statement, the banks have failed to fulfil their obligations.

Therefore, they were closed in compliance with the Russian legislation.

The decision was dictated by the task to protect the interests of depositors and clients, whose legitimate interests were violated as the above banks stopped operation in Crimea and Sevastopol with no prospects for resuming work.

There was no other opportunity to ensure effective protection of rights of the depositors and clients of these banks, except by stopping their operation, the CBR said.

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