On the termination of the activities of isolated structural divisions of credit institutions operating on the territory of the Republic of Crimea and on the territory of the federal city of Sevastopol

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’, the Bank of Russia took decisions Nos. RN-33/30, RN-33/31, RN-33/32, RN-33/33, RN-33/34, respectively, on the termination from 10 June 2014 of the activities on the territory of the Republic of Crimea and on the territory of the federal city of Sevastopol of isolated structural divisions of the following credit institutions:

PUBLIC JOINT-STOCK COMPANY COMMERCIAL BANK DANIEL, the city of Kiev, Ukraine (PJSC COMMERCIAL BANK DANIEL);

PUBLIC JOINT-STOCK COMPANY JOINT-STOCK COMMERCIAL BANK CAPITAL, the city of Donetsk, Ukraine (PJSC JSCB CAPITAL);

Public joint-stock company Bank CLEARING HOUSE, the city of Kiev, Ukraine (JSB CLEARING HOUSE);

PUBLIC JOINT-STOCK COMPANY COMMERCIAL BANK NADRA, the city of Kiev, Ukraine (PJSC CB NADRA);

PUBLIC JOINT-STOCK COMPANY REAL BANK, the city of Kharkov, Ukraine (PJSC REAL BANK).

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

The decision taken by the Bank of Russia to terminate the activities on the territory of the Republic of Crimea and on the territory of the federal city of Sevastopol of isolated structural divisions of the aforementioned credit institutions 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’.

In accordance with Article 7 of the abovementioned Federal Law, 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 structural divisions of the aforementioned banks.

The decision on the termination of the activities of the Ukrainian banks’ divisions 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 these banks’ divisions 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 opportunity to ensure an effective protection of the rights of depositors and customers of these banks living (engaged in economic activities) on the said territories, except for terminating the activities of the banks’ divisions.

Civil legal claims to the aforementioned banks, including 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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10.06.2014 00.00.00