On termination of activity of isolated structural divisions of credit institutions on territory of Republic of Crimea and on territory of 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’ (hereinafter, Federal Law No. 37-FZ), the Bank of Russia took decisions Nos. RN −33/44, RN-33/43 and RN-33/42 on the termination from 26 November 2014 of the activity 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 GOLDEN GATE BANK or PJSC GOLDEN GATE BANK, the city of Kharkiv, Ukraine;

PUBLIC JOINT-STOCK COMPANY NEOS BANK or PJSC NEOS BANK, the city of Kiev, Ukraine (formerly — PUBLIC JOINT-STOCK COMPANY BANK OF CYPRUS);

Public joint-stock company CREDIT AGRICOLE BANK or PJSC CREDIT AGRICOLE BANK.

In accordance with Article 7 of Federal Law No. 37-FZ, the termination of the activity of isolated structural divisions of the said credit institutions means that they are 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 and on the territory of the federal city of Sevastopol.

The decision taken by the Bank of Russia to terminate the activity 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’ (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 banks.

The decision on the termination of the activity 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 activity. 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 activity of the bank’s division.

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

The reference to the Press Service is mandatory if you intend to use this material.

26.11.2014 00.00.00