Ruble will become official currency in former Ukrainian regions

The hryvnia will be accepted for payment until December 31

The Russian ruble is set to become the official currency for the Donetsk and Lugansk People’s Republics, as well as Kherson and Zaporozhye Regions, the former Ukrainian territories that voted to join Russia in a referendum earlier this week.

According to the press service of Russia’s State Duma Committee on State Construction and Legislation, the Ukrainian hryvnia will be accepted for payments in the regions until December 31. However, starting January 1, the ruble will be the only currency accepted.

“The ruble will be the monetary unit on the territories of the new [Russian] regions. Until December 31, 2022, the Ukrainian hryvnia will be accepted for cash and non-cash payments. The Bank of Russia will be empowered to establish the specifics of credit and non-credit financial institutions operation,” the press service said in a statement on Sunday.

The DPR and LPR broke off from Kiev and had been de facto independent territories since 2014. Kherson and Zaporozhye declared independence from Ukraine earlier this year. All four territories voted in favor of joining Russia in referendums held between September 23 and 27.

READ MORE: Russia’s top court rules on accession of former Ukrainian regions

The Russian Constitutional Court ruled on Sunday that the treaties on the accession of the territories to Russia are in full accordance with the constitution, and the next step to make them part of Russia is for the documents to be ratified by both houses of the Russian parliament. The votes on this are expected to pass in the coming days.

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