Russia is officially directly supporting the ‘Donetsk People’s Republic’ in East Ukraine.
The acting head of the republic, Denis Pushilin, announced an “international” bank would open in November.
Folks, November is less than one week away and no Russian bank has yet been identified to open a branch in the war zone known as the DNR. Opening a new branch is usually a long-term carefully planned and executed operation. This is a high-risk area, in a ‘republic’ recognized only by Russia, where combat equipment travels with full combat loads, soldiers have weapons, and people are dying from the conflict. Russian-sponsored terrorists operate freely there. But somehow some Russian bank is going to willingly open a branch there?
- Where are they going to find the people to work there with proper qualifications?
- If they are supplying money, would the bank employees be aiding and abetting terrorism?
- Are they going to apply to be a part of the international banking community and be on the SWIFT network? (Russia bank heist: Thieves used SWIFT network to steal millions)
- Who are they going to rip out of a steady job in Russia and forcibly move to Donetsk?
- Who is going to supply the on-hand bank reserves?
The Russian banking system is highly politicized, regulated and subject to the intervening whims of the Bank of Russia. It is also highly top-heavy; top banks Sberbank and VTB have more net assets than the next 20 banks combined. After these two giants, there are four other banks with total assets in excess of $40 billion: Gazprombank, VTB24, Bank Otkritie Financial Corporation and Bank of Moscow. (https://www.investopedia.com/articles/investing/082015/6-biggest-russian-banks.asp)
The Bank of Moscow is a subsidiary of VTB.
Bottom line, this is going to have to be directed by the Kremlin/Bank of Russia from the top. This makes no sense, business-wise. Pushilin may be talking out his backside.
International bank to open in Donetsk republic in early November
According to Pushilin, the presence of an international bank is necessary to simplify the logistics chain of exporting products from the republic
MOSCOW, October 24. /TASS/. An international bank is to open on the territory of the self-proclaimed Donetsk People’s Republic (DPR) in early November of this year, acting head of the republic Denis Pushilin said in an interview with the Rossiya 24 TV channel.
“The presence of an international bank will enable our entrepreneurs to make settlements in the banking system, which is no longer as limited as we had, I think we will see the opening of this bank in early November,” he said.
According to Pushilin, the presence of an international bank is necessary to simplify the logistics chain of exporting products from the republic.
“Any resident will have the opportunity to order delivery and make payment, there will be no need to travel to Rostov (Rostov-on-Don – TASS), which is the case now,” he explained.
On September 25, the republic’s Council of Ministers adopted documents for the opening of a branch of one of the Russian banks in the republic. The name of the bank was not specified.