The National Bank of Ukraine (NBU) cut off the country’s electronic payment system in Donetsk and evacuated employees after they were allegedly threatened by separatists.
The service was suspended for a day after Russian separatists calling themselves "People’s Donetsk Republic" demanded an undisclosed sum of money from the regional NBU office.
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The head of the state treasury, Tetiana Sliuz, said: "The NBU Directorate in Donetsk Region will not be clearing payments in the territory of Donetsk."
"This is because of the threat to employees’ lives by separatists of the so-called, self-appointed Donetsk People’s Republic, and the need to evacuate the NBU employees," she added.
At the time of writing, a spokesperson for the central bank confirmed that the service had been suspended, but was now up and running again.
They said: "The operation of the NBU Office in Donetsk Oblast was suspended, due to separatist activity in the region.
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By GlobalData"On May 15, representatives of the self-proclaimed People’s Donetsk Republic demanded from the management of the office a substantial amount of cash. The separatists threatened to "clear" the building if their demand was not satisfied.
"In order to save the lives and health of the office’s staff and customers, the National Bank decided to evacuate the staff and to suspend banking operations in Donetsk region."
Acting NBU Governor Volodymyr Krotiuk said in parliament that the National Bank had increased control over banks in eastern regions.
"Today, the NBU Office in Donetsk Oblast is operating as normal. The electronic payment system and banks in the region have resumed operation," said Krotiuk.
The crisis in Ukraine has had a dramatic impact on the banking industry in the region, with Raiffeisen Bank Aval and Privatbank closing their branches in the Crimea.
VTB Bank and fellow Russian lender Sberbank suspended all new loans to Ukraine in February and in March BNP Paribas announced it would cut 1,600 Ukrainian jobs by 2015.
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Russian lenders VTB Bank and Sberbank suspend new loans to the Ukraine
