On 6 May 2014, the National Bank of Ukraine (the “NBU“) approved Resolution No. 260On Recalling and Cancellation of Banking Licenses and General Licenses for Carrying out Foreign Currency Operations of Certain Banks and Closing of Banks’ Branch Offices Located on the Territory of the Autonomous Republic of Crimea and the City of Sevastopol” (the “NBU Resolution”) prohibiting operation of Ukrainian banks in Crimea and Sevastopol. In particular, the NBU Resolution establishes the following restrictions on banking operations in Crimea and Sevastopol:

  • Ukrainian banks are prohibited from providing financial services in Crimea and Sevastopol;
  • Ukrainian banks are prohibited from opening their branches in Crimea and Sevastopol. Those banks that already have branches in Crimea or Sevastopol are obliged to close them within one month;
  • Ukrainian banks are prohibited from establishing correspondent relations with Ukrainian and foreign banks and financial institutions which are located or carrying out activities in Crimea and Sevastopol. Ukrainian banks are obliged to terminate all such correspondent relations as of the date of effectiveness of the NBU Resolution; and
  • cancellation of the banking licenses and general licenses for carrying out foreign currency operations of Public Joint-Stock Company “Chernomorskiy Bank of Development and Reconstruction” and Public Joint-Stock Company Bank “Morskoy”, which are Ukrainian banks located in Crimea. Please note that the NBU Resolution also cancels the registration of agreements on participation of these banks in international payment systems and obliges Ukrainian payment systems to cease servicing these banks.

The NBU Resolution stipulates that it is effective as of the day of its approval, 6 May 2014.

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