Largest Bank in Ukraine Closes Branches in Rebel Cities

Ukraine’s largest bank has temporarily closed branches in separatist-held Donetsk and Luhansk, saying it could no longer carry out cash transactions in regions riddled with crime that could “threaten the lives” of its workers.

Pro-Russian separatists have targeted Privatbank, after its co-owner, billionaire Igor Kolomoisky, was appointed by the new government head of the nearby Dnipropetrovsk region and swiftly announced a $10,000 bounty on the heads of Russian “saboteurs”.

Rebels, who say they want independence from Kiev, set fire to a branch in the town of Mariupol in the Donetsk region late on Saturday and raided a security truck last week in Horlivka, south of the region’s main rebel stronghold.

“In the current circumstances we cannot and do not have the right to make people go to work in the Donetsk and Luhansk regions, where armed people break into bank branches and seize security vans in the towns,” Privatbank said in a statement.

It said its clients could access their accounts via the Internet and mobile devices, use their cards in shops and make cashless transactions at self-service terminals.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza