Krasnoyarsk - The Central Bank of Russia (CBR) has halted the operations of another four Ukrainian banks in Crimea and in Sevastopol for not fulfilling obligations, the Central Bank said in a press release.
The decision was reached on July 7.
The Central Bank halted the operations of divisions of the banks Arkada, Express-Bank, Energobank (all Kyiv-based) and the Kyiv division of Austria’s Raiffeisenbank.
“The decision to halt the operations of divisions of these Ukrainian banks was made due to the virtual suspension of their work in the Republic of Crimea and the federal city of Sevastopol, as well as the unlikelihood of them resuming operations,” the CBR said.
The CBR has notified the Crimean Depositors Protection Fund about the decision and recalled that this is grounds for the clients of the shuttered divisions of Ukrainian banks to receive appropriate compensation.
The Crimean Depositors Protection Fund was created in April 2014. As of June 24, the fund has accepted more than 205,000 applications for compensation from the clients of Ukrainian banks that have halted operations in Crimea, and has paid residents of the region 6.6 billion rubles.
Agent banks had been given 10.2 billion rubles for payment to depositors of Ukrainian banks, of which 3.6 billion rubles have not yet been allocated.
The fund is now accepting applications to agree to acquire claim rights to deposits (accounts) and pay out compensation of 100 percent on deposits (up to 700,000 rubles per bank per depositor) from the clients of 34 banks.
There are 239 points in 21 population centers in Crimea where depositors of shuttered divisions of Ukrainian banks can submit applications for compensation.
The deputy head of Russia’s Deposit Insurance Agency, Andrei Melnikov, earlier estimated that 30 billion rubles would be needed to pay compensation in Crimea.
