On 6 May 2014 the National Bank of Ukraine (the "NBU") adopted its Regulation No. 260 "On Recalling and Cancellation of Banking Licenses and General Licenses for Carrying out Foreign Currency Operations of Certain Banks and Closing of Banks’ Branches Located on the Territory of the Autonomous Republic of Crimea and the City of Sevastopol" (the "Regulation") which entered into force on the same date.

The Regulation expressly obliges all Ukrainian banks to close their existing branches and divisions in Crimea and Sevastopol within one month, prohibits opening new branches and divisions there, and prohibits Ukrainian banks to provide any financial services in Crimea through their commercial agents. Notably, the NBU has not prohibited Ukrainian banks to provide financial services to individuals and legal entities residing/located in Crimea and Sevastopol through their branches, divisions and commercial agents located in other regions of Ukraine.

Under the Regulation, the NBU also obliges all Ukrainian banks to terminate and not establish new correspondent relations with Ukrainian or foreign banks and other financial institutions operating in Crimea and Sevastopol.

Finally, the NBU cancelled banking licenses and general licenses for carrying out foreign currency operations earlier issued to Public Joint-Stock Company "Chernomorskiy Bank of Development and Reconstruction" and Public Joint-Stock Company Bank "Morskiy" headquartered in Crimea.