NBU demands banks to stop all financial transactions on rebel-controlled territories

The National Bank of Ukraine (NBU) demands that banks fulfill the NBU resolution of August 6, 2014 and suspend all financial transactions on rebel-controlled territories as the president decree of November 14, 2014 on the decision of the National Security and Defense Council of November 4, 2014 on the urgent measures of stabilizing the social and economic situation in Donetsk and Luhansk regions.

«According to the requirements of clause 1 of resolution No. 466 Ukrainian banks suspend all types of financial transactions (underlined in the original) in settlements which are not under control of Ukrainian authorities,» reads a telegram of the NBU sent to banks on Monday.

«The above-mentioned transactions are transactions on servicing of accounts by banks, including card accounts opened to economic entities of all types of ownership,» the NBU said.

The regulator said that according to resolution No. 466 of August 6 on the suspension of financial transactions, banks resume financial transactions when districts or towns of regional importance in Donetsk and/or Luhansk regions become under control of Ukrainian authorities.

«We pay attention to the liability to strictly fulfill the requirements of resolution No. 466 by Ukrainian banks,» reads the telegram.

Local mass media reported that recently departments and ATMs of Oschadbank, Subsidiary Bank Sberbank of Russia and FUIB partially continued working on the rebel-controlled territories in Donetsk and Luhansk regions. One of residents of Donetsk confirmed this information to Interfax-Ukraine by phone.

The three banks denied information that their divisions continue working on the said territories.

As for banking cards issued by all Ukrainian banks, they can be used in retail outlets. Cashless payments are settled by enterprises in Donetsk and Luhansk region which transferred their accounts to the divisions of banks on the Ukraine-controlled territory.