OREANDA-NEWS. 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-33/47 on the termination from 29 December 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 PUBLIC JOINT-STOCK COMPANY ZLATOBANK or JSC ZLATOBANK, the city of Kiev, Ukraine.

In accordance with Article 7 of Federal Law No. 37-FZ, the termination of the activity of the isolated structural divisions of the said credit institution means that it is prohibited from conducting banking and other operations, except for transactions on 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 the isolated structural divisions of the said credit institution serves as a ground for the autonomous non-profit organisation Depositor Protection Fund to acquire rights (claims) on deposits and to make payments in compliance with Articles 7 and 9 of Federal Law No. 39-FZ, dated 2 April 2014, ‘On the Protection of the 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).

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

The decision on the termination of the activity of the Ukranian bank’s divisions is motivated solely by the protection of the interests of depositors and customers whose legitimate rights have been violated, including due to the actual suspension of the work of this bank’s divisions in the Republic of Crimea and the federal city of Sevastopol, as well as the lack of prospects for resuming its activity. For the foregoing reasons, there was no other opportunity of ensuring an efficient protection of the rights of this bank’s depositors and customers living (engaged in businesses) on the aforementioned territories, except for terminating the activity of the bank’s divisions.

Civil law claims to the said bank, including those of the Depositor Protection Fund, will be brought before court according to the generally established procedure.