Lugansk People’s Republic enters ruble zone via South Ossetia bank

The Lugansk People’s Republic (LPR) has swapped hryvnia for ruble through South Ossetia, says LPR Finance Minister Yevgeny Manuylov.

“We have entered the ruble zone through South Ossetia. The representative office of the Bank for International Settlements has been opened in the republic. Thanks to it, we have an opportunity to make non-cash operations. On a self-sustained budget, we work like in 1990s, but entrepreneurs have replaced the shuttle traders now,” Manuylov said to the Russian News Service on August 19.

The minister said hryvnia accounts for 3.4% of total state revenues of the republic.

Starting September 1 2015, the Russian Ruble will become the main currency in the LPR instead of the multi-currency system (RUR, UAH, USD, EUR) operating in the republic during the last four months. 

South Ossetia recognized the independence of the Donetsk and Lugansk People’s Republics in June 2014.