The National Bank of Ukraine implemented a resolution on Dec. 17 to expedite and regulate banks’ responses to transactions made by Crimean businesses.

The scope of the updated banking regulations includes modified definitions of Ukrainian residency that allow for domestically displaced nationals to continue to be protected by the same laws that govern mainland Ukraine. The regulations also dictate the terms of allowance between Ukraine legal entities and Crimean business entities.

Resolution No. 810 said the regulations are designed around “the application of specific provisions of the foreign exchange legislation during the regime of temporary occupation of the territory of the free economic zone ‘Crimea.’”

Loan repayments between Crimean borrowers and Ukrainian lenders are now permitted in both Ukrainian hryvnia and foreign currencies.

While the resolution invalidates agreements made by illegal residents and business entities currently in Crimea, Ukrainian banks are able to exchange Russian rubles for the purpose of debt settlements.

Professional agreements between Crimean business entities and nonresidents, however, are no longer recognized as legitimate by the Ukrainian government.