#AceFinanceNews – SIMFEROPOL,- March 23 – Shops in Crimea are getting ready to change over to pricing in Russian roubles after but some retailers will be unable to do it as of Monday, March 24 because of technicalities.
An Itar-Tass reporter could see it while making a tour of several supermarkets in Simferopol and Sevastopol.
Labels with dual prices have appeared in some department stores. The prices in Ukrainian hrivnas as converted into roubles at a fixed exchange rate of 3.8 roubles per one hrivna.
Shops of the Epitsentr hypermarkets of construction materials and household appliances are distributing leaflets that say ‘Some prices in roubles and hrivnas’.
However, dual prices have so far been appointed for the commodities of 1,000 and more hrivnas apiece.
Along with it, neither cashiers nor managers at an Epitsentr hypermarket in Simferopol were able to tell whether the transactions in roubles would begin Monday – the day on which the rouble would become the official monetary unit in Crimea.
“At this moment, our cash registers are aligned to pricing in hrivnas,” a manager told Itar-Tass.
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1. 20 March – `6.22 GMT – #AceFinanceNews – The Russian rouble will officially adopted in Crimea on March 24, Crimean State Council (parliament) Chairman Vladimir Konstantinov said on Thursday, March 20. http://wp.me/pzTwj-2Lr
Tass and Russian Finance News
#AceFinanceNews – GENEVA – March 23 – President of the Swish Social Democratic Party Christian Levrat is confident Bern should refrain from imposing sanctions against Russia as a response to its re-unification with Crimea.
This step would sharply narrow mediation opportunities of the Swiss Confederation, Levrat said in an interview with the Swish German-language daily Neue Z·rcher Zeitung that was published on Sunday.
“Switzerland’s role differs from the roles of the European Union and the Unites States,” he said. “Switzerland comes forward as a mediator which implies that it should refrain from joining the sanctions of other countries though their reaction is quite understandable.”
Switzerland chairs the Organisation for Security and Co-operation in Europe /OSCE/ this year, the politician said dubbing it the world’s most neutral organisation and an ideal platform for settling disputes between the East and the West.
Russian, Swiss and European News
#AceFinanceNews – MOSCOW – March 22 – A draft law outlining key aspects of the financial system in Crimea and Sevastopol and its operation during the transitional period was submitted to the State Duma, lower house of parliament, on Saturday, March 22.
The draft law, written by Natalia Burykin, Head of the Duma Committee on the Financial Market, and Nikolai Zhuravlev, Deputy Head of the Committee on the Budget and Financial Markets of the Federation Council (upper house of parliament), sets out the terms of operation for banks, non-lending financial institutions, non-bank financial organisations, and cash exchange offices in Crimea and Sevastopol during the transitional period.
The transitional period will continue until January 1, 2015 to solve all issues pertaining to the integration of the new constituent members into the economic, financial, credit and legal systems of Russia, into its government system, as well as issues concerning military duty and military service in the Republic of Crimea and Sevastopol.
Taxes collected in Crimea will remain in its budget until 2015, and Russia will provide financial support to Crimea and Sevastopol in 2014-2016.
Russian Finance News
#AceFinanceNews – MOSCOW – 21 March – Prime Minister Dmitry Medvedev on Friday demanded Ukraine pay back $11 billion that he said Kiev had saved through discounted gas prices in return for hosting a Russian naval base in Crimea.
Ukraine owes the money because Crimea is now part of Russia and the two countries’ 2010 lease agreement was now “subject to annulment,” Medvedev said at a meeting of the Security Council.
“The Ukrainian state saved some $11 billion dollars and accordingly the Russian budget has a missed profit of the same $11 billion,” he warned.
Soon after coming to power in 2010, then president of Ukraine, Viktor Yanukovych, agreed to extend the lease on Russia’s Black Sea Fleet in Crimea that was due to expire in 2017 for 25 years, until 2042.
In return, Moscow agreed to cut natural gas prices for Ukraine by $100 for every 1,000 cubic metres.
Russian Finance and Media Sources
#AceFinanceNews – The price of Russian gas to Ukraine could rise to $500 per 1,000 cubic meters, as future developments in relations between Moscow and Kiev remain vague.
From April 1 the price Ukraine pays for Russian gas will go up to $360-$370 per 1,000 cubic metres, after Russia cancelled the discount agreed in late December, Pavel Zavalny, the head of Russian Gas Society told Izvestia newspaper.
In the worst case scenario, and Ukraine decides to take over Russian property, as well as new threats from radical nationalists, the price could jump to as high as to $500, the paper added.
Such a price rise may take place if the Kharkov agreement of 2010 is cancelled. Under its terms, Russia allowed a $100 discount to Ukraine for keeping its fleet in the Crimea, Izvestia quotes its source in Gazprom as saying.
“The discount of $100 was connected with the Russian fleet’s stay in the territory of Ukraine. Now, when circumstances change, it’s a big question, whether we can keep it in the future,” the Minister of Energy of Ukraine Yury Prodan said.
Gazprom has until April 10 to decide a new price.
Russian Media and News
#AceFinanceNews – A senior Russian defence official has said that Moscow won’t simply accept France’s threat to mothball its order of two Mistral warships following events in Crimea.
“There is no doubt the Russian side will defend its rights … and will demand compensation for all losses we might sustain if the Mistral contract is breached,”
Deputy Defence Minister Yuri Borisov told RIA news agency.
Russia says it has already paid more than 700 million euros for the order, and as well as returning the money, France would be obliged to pay additional penalties according to the terms of the contract.
#AceFinanceNews – The Russian rouble will officially adopted in Crimea on March 24, Crimean State Council (parliament) Chairman Vladimir Konstantinov said on Thursday, March 20.
“The rouble is already here.
All operations will be carried out in roubles from Monday March 24 .
Payments, pensions and salaries will be paid in roubles,” he added.
Related News – http://wp.me/pzTwj-2IQ
#AceFinanceNews – Moscow – March 19 – Transition of banks operating in Crimea from the payment system of the National Bank of Ukraine to that of the Central Bank of Russia will be not difficult, although Russia has had no such precedents before, former Central Bank of Russia deputy chairman Konstantin Korishchenko told Itar-Tass on Wednesday.
Transition of Crimea’s banks under control of the Russian regulator will proceed painlessly, as “the system of correspondent relations exists between banks and any payments can be carried out within this system for a rather long time,” he said, adding that there would be no difficulties with personnel training.
Moreover, the transition process would create no reasons for curtailing business of certain banks, he said. #ANS2014
#AceWorldNews The Crimean parliament has announced the Russian Rouble will become the second official currency of Crimea and will be circulating alongside the Hryvnia until it is withdrawn in 2016.
#AceGuestNews – BERLIN – German Chancellor Angela Merkel said on Monday that Europe had shown great unity on the Ukraine crisis but it had not been an easy decision to impose sanctions on Russia for a referendum in occupied Crimea and its refusal to talk to the government in Kiev.
“It was a decision that nobody took lightly,” she told a joint news conference with Italian Prime Minister Matteo Renzi.
(Reporting by Stephen Brown and Alexandra Hudson; Editing by Noah Barkin)
“It wasn’t our aim. We wanted talks and a diplomatic solution but the clear violation of international law yesterday with the so-called referendum meant we had to take this step and I am glad that Europe showed such unity,” Merkel said.