Crimea: banks are opened, banks are closed

16.04.2014

“Rossiyskaya gazeta” reports that today Bank of Cyprus is phasing out its engagement in Crimea. All three offices, located in Simferopol, Sevastopol, Yalta, are closed. This action will cause negative consequences for habitants of Crimea: they have to go to Ukraine to withdraw cash from accounts. Such decision of bank may be connected with Ukrainian sanctions against Crimea and with tax and currency risks.

Tomorrow a Ukrainian subsidiary company of Alfa-bank will leave Crimea. As a subsidiary company of Raiffeisen, which is gone from Crimea yesterday, an Alfa-bank subsidiary company refused to work in accordance with Russian legislation on functioning of financial system on the territory of Crimea.

Nevertheless, a bank “Rossiya” claims that it opens divisions in Simferopol to represent interests of the bank on the territory of Crimea. In the near future new branches and offices in other cities will be opened.

Based on: http://www.rg.ru/2014/04/14/banki-site-anons.html, http://web.abr.ru/sankt-petersburg/about/news/40547/

Expert’s opinion

Nowadays a situation with banks leaves a lot to be desired. Europe is imposing sanctions, banks are going to be closed, businessmen cannot decide between Asia and Europe.

Even common people are looking for answer: how to keep an accumulated property during unstable situation in the world. There is no right single decisions, however, diversification of currency and banks can save not only inheritance but also working capital.

When selecting banks, available information provided on the site of the bank, annual reports, net profit and liquidity should be taken into account. And also it is important to seek the assistance of lawyers, who contact constantly with banks and who gather first-hand information

Irina Lomakina ( Director of “Honest & Bright” Company Moscow office)