On termination of activity of isolated structural division of credit institution on territory of Republic of Crimea

Due to the failure to honour liabilities to creditors (depositors) and guided by 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’ (hereinafter, Federal Law No. 37-FZ), the Bank of Russia took a decision No. RN-33/41 on the termination from 9 October 2014 of the activity on the territory of the Republic of Crimea of an isolated structural division of PUBLIC JOINT-STOCK COMPANY COMMERCIAL BANK ACTIVE-BANK or PJSC CB ACTIVE-BANK, the city of Kiev, Ukraine.

In accordance with Article 7 of Federal Law No. 37-FZ, the termination of the activity of isolated structural division of the said credit institution means that it is prohibited from conducting banking and other operations, except for operations connected with the transfer of assets and liabilities, on the territory of the Republic of Crimea.

The decision taken by the Bank of Russia to terminate the activity on the territory of the Republic of Crimea of isolated structural division of the aforementioned credit institution serves as a ground for the autonomous non-profit organisation Depositor Protection Fund to acquire the rights (claims) on deposits and to make compensation payments in compliance with the procedure stipulated 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 Isolated Structural Divisions of Banks Registered and (or) Operating on the Territory of the Republic of Crimea and on the Territory of the Federal City of Sevastopol’ (hereinafter, Federal Law No. 39-FZ).

In accordance with Article 7 of Federal Law No. 39-FZ, the Bank of Russia notified the autonomous non-profit organisation Depositor Protection Fund about the grounds to acquire by the latter the rights (claims) on deposits placed with the structural division of the aforementioned bank.

The decision on the termination of the activity of the Ukrainian bank’s division was prompted primarily by the task to protect the interests of depositors and customers whose legitimate rights had been violated, including as a result of the actual suspension of work of this bank’s division in the Republic of Crimea, as well as the lack of prospects for resuming its activity. As a result, there was not any other opportunity to ensure an effective protection of the rights of depositors and customers of this bank living (engaged in economic activities) on the said territory, except for terminating the activity of the bank’s division.

Civil legal claims to the aforementioned bank, including those on the part of the Depositor Protection Fund, will be considered, if necessary, by the competent judicial bodies in a generally established procedure.

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09.10.2014 00.00.00