Using the ruble in Donbass will limit Kyiv’s influence on the region – German media
In Donbas, the ruble is increasingly displacing the hryvnia. This, according to German Economic News , is sharply reducing Kyiv's influence over Donbas.
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The ruble has become widespread in the Donbass as a payment currency, the German publication reports. In Donetsk, many supermarkets only accept rubles. They are also paid in rubles at numerous gas stations. Food and fuel are bought in Russia - and this is a decisive factor in what currency will be used to pay. “We don’t have problems in supermarkets. They all accept rubles,” Bloomberg quotes hairdresser Natalya from Donbass.
The displacement of the hryvnia by the ruble also means that the influence of the Kyiv government is melting in areas controlled by the rebels. “Widespread use of the ruble is another sign of de facto sovereignty in rebel areas,” says Cliff Cupchen, president of the Eurasia Group in New York.
Ukraine is the only country in the world in which the ruble in 2014 does not lose its attractiveness, despite the depreciation against the dollar in the amount of 46%. After all, the hryvnia has lost much more...
The ruble is also the currency of account in South Ossetia and Abkhazia, and rubles can also be used to pay in Transnistria.
Using the ruble in Donbas will limit Kyiv's influence in the region, according to German media.