Further operation of Ukrainian banks on the Crimean peninsula will be regarded as breach of legislation

Given the fact that the law of Ukraine on rights and freedoms of citizens, legal regime on the temporarily occupied territory of Ukraine came into force, further functioning of banks on such territories will fall within the provisions of the law and be construed as violation of the Ukraine’s legislation, in consideration of impossibility for the banks and their branches to follow the requirements set forth in the legislation of Ukraine and the NBU’s regulative documents, the official statement of the NBU says.

Moreover, most banks on the peninsula were impelled to suspend or terminate their operations even before passing the said directive.

Taking into account that the NBU can neither regulate and supervise operations of the banks and their branches located on the territory of the Autonomous Republic of Crimea and Sevastopol city, nor perform currency control and financial monitoring, the NBU Board made decision dd. May 6, 2014 (an interim decision until the end of occupation) to suspend any operations of the Ukrainian banks and their branches in Crimea. 

It is worth noting that pursuant to article 5 of Law of Ukraine on rights and freedoms of citizens, as well as legal regime on the temporarily occupied territory of Ukraine, the liability for infringing the human rights and freedoms on the temporarily occupied territory, what is stipulated by the Constitution and laws of Ukraine, reimbursement for losses arisen due to occupation and incurred by natural persons, citizens of Ukraine, foreigners and stateless persons, will be fully laid upon the country that has seized the territory pursuant to the norms and rules of the international law.