The Central Bank of Russia (CBR) has shut down offices of four more Ukrainian banks in Crimea and the city of Sevastopol on Monday, July 7.
“Over non-fulfilment of liabilities to depositors and according to Article 7 of the federal law on peculiarities of operating the financial system in the Republic of Crimea and the federal city of Sevastopol for the transitional period the CBR decided to shut down offices of lending organizations Arkada, Raiffeisen Bank Aval, Express-Bank and Energobank on July 7,” –reads the statement of the CBR, noting that all four banks were registered in Ukraine’s capital, Kiev.
The shutdown of offices of these crediting institutions means a ban on their banking and other operations, except for transactions related with transfer of assets and liabilities in Crimea and Sevastopol.
Russian annexed Crimean peninsula in March 2014, following all-Crimean referendum on the region’s status.
Following the annexation, the majority of Ukrainian banks stopped their operation in Crimea, shutting the Crimean branches. Before the annexation, there were 77 Ukrainian banks in the region, among them Ukraine’s biggest Privatbank, Ukrainian Joint Stock Bank, Imexbank, Kievan Rus Bank and the others.