On June 1, 2014, the Ukrainian hryvnya was fully withdrawn from circulation in Crimea and Sevastopol as the Federational Council of Russia approved a law to limit the hryvnia’s term of circulation.
The document reads that on the first day of summer, Crimea and Sevastopol were admitted into Russia as new constituent members switching over to the Russian rouble as of June 1, 2014. Starting from this date, the hryvnia receives the status of a foreign currency. Before this, the exchange rate was set by the Central Bank of Russia. Now, the credit and financial organizations operating in the region are free to offer their own exchange rates. However, Russian President Vladimir Putin assured earlier dual currency circulation until January 1, 2016. Nevertheless, the plans have changed and now Vladimir Putin calls for quicker hryvnia’s withdrawal. This decision is explained by poor communication with the Ukrainian banks working in Crimea. Now the residents of the peninsula will have to exchange the hryvnias at the rate set by the exchange offices. The referendum on joining Russia was held on March 16 in Crimea. Following the referendum on the region’s status, Crimea reunited Russia.
