Ukrainian President Petro Poroshenko has ratified a law allowing Donetsk and Lugansk regions to use the funds deposited in the accounts of the towns and villages located in the territory of the self-proclaimed Donetsk and Lugansk people’s republics. The Kiev authorities are going to use the money to restore and develop the territories they control in Donetsk and Lugansk regions.
The law was approved by the Supreme Rada on Oct 6 2015. According to Poroshenko’s press office, “the law allows using the budget balances of the towns and villages located in occupied territories for restoring social and transport facilities, houses and life-support systems in the territory of Donetsk and Lugansk regions.”
According to Ukraine’s Treasury, on Sept 1 2015 Kiev froze 2bn UAH ($100mn or $250mn, according to the Feb 2014 rate) in the Donetsk People’s Republic and 1bn UAH ($50mn or $125mn, according to the Feb 2014 rate) in the Lugansk People’s Republic.
According to the law, the frozen funds will be transfer to a special fund and from there to the local budgets of the Kiev-controlled regions of Donbass.
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