#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.
#AceFinanceNews – SEVASTOPOL – March 27 – The legislative assembly of Sevastopol decided at its special session to sign an agreement with the Russian Finance Ministry on additional financial support as a subsidy from the federal budget for the city.
Such subsidies are provided to ensure balanced budgets in Russian regions.
In accordance with the agreement, 2.4 billion roubles ($67.4 mln) will be provided in 2014.
The first tranche of 800 mln rbls ($22,5 mln) will be transferred in ten days after the agreement is signed.
“The subsidy is provided for us, taking into account that we have assumed financing of all the state power bodies during the transitional period. There is already a resolution of the government of the Russian Federation.
So, we need to forward the agreement to the Finance Ministry already today,” deputy head of the Sevastopol state administration Elimdar Akhtemov told the assembly.
Russian News Sources
#AceFinanceNews – SIMFEROPOL,- March 26 – Andrei Belyaninov, the head of the Russian Federal Customs Service, said on Wednesday that the geography of Russia’s foreign trade could change thanks to Crimean ports.
“I am sure that Russia will have new partners because it has obtained a great number of ports together with Crimea’s incorporation.
They include two deep-water ports like Sevastopol and Yevpatoriya,” Belyaninov said in an interview with Itar-Tass and CrimeaInform news agencies after his visit to the Crimean peninsula.
Belyaninov said the trade with Russia accounted for a huge share in Crimea’s foreign trade.
Those figures automatically fell out of Crimea’s foreign trade statistics after the peninsula’s incorporation into Russia.
The Federal Customs Service chief noted a temporary decline in Crimea’s trade with other foreign partners who were watching how the political situation was unfolding on the peninsula.
“It is absolutely clear that Crimea is Russian and will remain such forever.
So the question when trade is going to reach its former volumes is just a matter of time,” Belyaninov said.
He found it hard to say what trade volumes could go through the Crimean customs in a short-term perspective.
#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.
Ace Related News
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 – 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