The new, pro-Russian authorities of the Ukrainian province of Kherson, which has been occupied by Russia, announced that from today the Russian ruble will be the official currency but will circulate simultaneously with the Ukrainian hryvnia.
“The area is becoming a dual currency zone: the ruble will circulate alongside the hryvnia. Companies and businesses can list prices on both currencies,” the province’s civil-military administration said.
The announcement posted on the Telegram clarifies that the exchange rate is set at 2 rubles against 1 (one) hryvnia.
The very first branch of a Russian bank will open in the city of Kherson “very soon” and “all businessmen who wish to do so” will be able to open an account, the announcement added.
In late April, a local official said the ruble and the hryvnia could circulate in parallel for a “transitional period” until the introduction of the Russian currency was completed. The pro-Russian authorities made no mention of this possibility today. But Russian and local officials have said there is a possibility that the entire region could eventually be annexed by Russia.
The city of Kherson, very close to the Crimean peninsula annexed by Russia in 2014, was the first major city to be occupied by Russian forces on March 3, a few days after the invasion of Ukraine on February 24.