The Russian ruble has become the basic currency in the People's Republic of Luhansk on September 1, 2015.
According to RIA Novosti, the head of the Council of Ministers of the Republic, Gennady Tsypkalov, previously explained that the decision had been made because of the economic blockade, in which the republic continues to live because of the Kiev government.
According to the official, the People's Republic of Luhansk still uses a multicurrency system: the Russian ruble, the Ukrainian hryvnia, the dollar and the euro remain in use, but the Russian ruble will be the dominating currency in the republic.
The payment of wages, pensions and social benefits will be carried out in Russian rubles with no peg to the Ukrainian currency. Previously, the calculation was based on the rate of two rubles for one hryvnia. Planning, budgeting, financial and tax reporting will also be formed in rubles.
In August, the share of the Russian ruble on the currency market of the self-proclaimed People's Republic of Luhansk made up about 85%.
Read article on the Russian version of Pravda.Ru
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