According to the Law of Ukraine "On Ensuring Rights and Freedoms of Citizens and the Legal Regime in the Temporarily Occupied Territory of Ukraine", Ukrainian laws apply in the Autonomous Republic of Crimea and the city of Sevastopol and the government authorities, the local government authorities, economic entities, institutions and organizations shall abide by them.
The occupation of the territory of the Autonomous Republic of Crimea and the city of Sevastopol has disrupted the operation of the banking system in the region, posing a threat to the interests of depositors and other creditors of banks. Further attempts by banks to operate on occupied territory shall represent a violation of Ukrainian laws due to the inability of banks and their branches to meet the requirements of Ukrainian laws and NBU regulations. In view of the above, many banking institutions operating there have already been forced to cease their operations.
Given the inability of the National Bank of Ukraine to carry out banking regulation and supervision, exercise foreign exchange control and state financial monitoring over activities of banks and their branches operating in the Autonomous Republic of Crimea and the city of Sevastopol, on May 6, 2014, the National Bank of Ukraine Board was compelled to pass the Resolution (the temporary move will remain in effect until the end of occupation) requiring Ukrainian banking institutions and their branches to cease operations within the above-mentioned territory.
It should be noted that pursuant to Article 5 of the Law of Ukraine "On Ensuring Rights and Freedoms of Citizens and the Legal Regime in the Temporarily Occupied Territory of Ukraine", the ultimate responsibility for violations of rights and freedoms of the man and citizen in the temporarily occupied territory, payment of compensation for the loss of property incurred by legal entities and citizens of Ukraine due to the temporary occupation rests with the state occupying this territory in accordance with norms and principles of international law.