On the termination of the activities of separate structural units of credit institutions on the territory of the Republic of Crimea and the territory of the federal city of Sevastopol

In compliance with Article 7 of Federal Law No. 37-FZ, dated 2 April 2014, ‘On the Specifics of the Functioning of the Republic of Crimea’s and the Federal City of Sevastopol’s Financial System in the Transition Period’ the Bank of Russia took decisions Nos. RN-33/1, RN-33/2, RN-33/3 and RN-33/4, respectively, on the termination as of 21 April 2014 of the activities on the territory of the Republic of Crimea and the territory of the federal city of Sevastopol of separate structural units of the following credit institutions due to their failure to honour liabilities to creditors (depositors):

• The Public Joint-Stock Company Commercial Bank PrivatBank (PAO PrivatBank) (Dnepropetrovsk, Ukraine);
• The Public Joint-Stock Company Vseukrainskyi Aktsionernyi Bank (PAO VAB Bank) (Kiev, Ukraine);
• The Public Joint-Stock Company Bank Kievskaya Rus (PAO Bank Kievskaya Rus) (Kiev, Ukraine);
• The Public Joint-Stock Company Imexbank (PAO Imexbank) (Odessa, Ukraine).

In compliance with Article 7 of Federal Law No. 37-FZ, the termination of the activities of separate structural units of the said credit institutions means that they are prohibited from holding banking and other operations, except for operations connected with the transfer of assets and liabilities, on the territory of the Republic of Crimea and the territory of the federal city of Sevastopol.

The decisions taken by the Bank of Russia on the termination of the activities of separate structural units of PAO PrivatBank, PAO VAB Bank, PAO Bank Kievskaya Rus and PAO Imexbank on the territory of the Republic of Crimea and the territory of the federal city of Sevastopol serve as the ground for the autonomous non-profit organisation Depositor Protection Fund to acquire the rights (claims) to deposits and make compensation payments according to the procedure established by Articles 7 and 9 of Federal Law No. 39-FZ, dated 2 April 2014, ‘On the Protection of Interests of Households Having Deposits with Banks and Separate Structural Units of Banks Registered and (or) Functioning on the Territory of the Republic of Crimea and the Territory of the Federal City of Sevastopol’.

In compliance with Article 7 of Federal Law No. 39-FZ, the Bank of Russia sent the autonomous non-profit organisation Depositor Protection Fund notifications on the emergence of grounds for the Depositor Protection Fund to acquire the rights (claims) to deposits placed with the structural units of the aforementioned banks.

The decision on the termination of the activities of structural units of the Ukrainian banks has been prompted solely by the tasks of protecting the interests of depositors and customers whose legal rights have been violated, including as a result of the actual shutdown of the units of these banks in the Republic of Crimea and the federal city of Sevastopol, as well as the lack of prospects for resuming their activities. As a result, there was not any other possibility to ensure effective protection of the rights of depositors and customers of these banks living (or engaged in economic activity) on the said territories, rather than to terminate the activities of the banks’ structural units.

Civil legal claims to these banks, including from the Depositor Protection Fund, will be considered when necessary by the competent judicial bodies in accordance with the generally established procedure.

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