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Russian ruble becomes only valid currency in Crimea

Published time: June 02, 2014 12:56
Simferopol accepts Russian rubles as payment (RIA Novosti / Andrey Iglov)

Simferopol accepts Russian rubles as payment (RIA Novosti / Andrey Iglov)

The Russian ruble has officially become the only valid currency in Crimea, with the Ukrainian hryvnia being given the status of a foreign currency. The move is another step toward closer integration with Russia.

From June 1 all settlements and payouts in the peninsula, including salaries, pensions and social benefits will be done in Russian rubles, Vedomosti says citing the Central Bank of Russia (CBR).

"The exchange of hryvnia to ruble will be at the rate set by the credit organizations, operating in the Republic of Crimea," says a statement from the Ministry of Economic Development and Trade of the Republic of Crimea.

Initially it was planned to have both currencies circulating in Crimea till January 1, 2016, but last week Russian President Vladimir Putin signed a document to speed up the change June 1, 2014.

The urgency was needed to free people in Crimea from the inconvenience of double pricing, CBR says.

Russian officials say there are no problems with rubles in Crimea, with the peninsula’s head of Government Rustam Temirgaliev saying there was enough rubles for all of Crimea’s needs.

We receive ruble currency every day,” Vedomosti quotes Temirgaliev as saying.

Economists say wider usage of rubles won’t affect the Russian economy.

The ruble exchange rate won’t be influenced, as the Crimean economy is small, as Vedomosti quotes independent analyst Vladimir Tichomirov.

The ruble exchange rate to the US dollar has gone down 6 percent since the start of the year, while the hryvnia has declined 30 percent, Bloomberg data shows.

A checker in a store in Simferopol accepts Russian rubles as payment (RIA Novosti / Andrey Iglov)

Comments (5)

 

Bronzewing 02.06.2014 15:19

Forest Barbieri 02.06.2014 13:26

What if the moon really is made of cheese?

  


Not just any cheese, it's Wensleydale!

 

Mark 02.06.2014 15:11

Critically more important is that according to a every recent survey whose results has been reported at the Voice of Russia website, 60% of Russians want to spend some of their summer holidays in the Crimea. Only 3% said they would visit resorts in Turkey or in Baltic States or Bulgaria. This is great opportunity for the Crimea economy and it would result massive economic lose to the toxically Russophobic Europe including wanna be Western Europe East European countries. The Baltic and Bulgaria in particular will pay economic price for their Russophobic policies. Hating Russia is very bad for business.

 

Warmonger101 02.06.2014 14:08

Jen Psaki 02.06.2014 13:16

What if Crimea goes back to Ukraine????

  


Ms Psaki would ask such question.

Did not Kiev parliament voted to remove all military from the east? More mood swings than a girl with eternal period ;)

View all comments (5)
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