DPR Authorities Deny Reports on Introduction of Own Currency

Donetsk People's Republic (DPR) has no immediate plans to introduce its own currency, as it requires much funding to do, and because there is currently no need to do so, according to the DPR press service.

DONETSK, December 21 (Sputnik) – There are no immediate plans to introduce Donetsk People's Republic's (DPR) own currency despite media reports, a source at the DPR press service told RIA Novosti on Sunday.

"Firstly, there is no need to introduce a currency yet. Secondly, creating and introducing our own currency requires much funding and will be possible only when the DPR [National] Bank opens correspondent accounts in other countries," the source said.

The comments came in light of the Ukrainian media reports suggesting that independence supporters of the country's southeastern regions were ready to introduce their own currency.

In November, Alexander Karaman, deputy chairman of the DPR council of ministers for social affairs, said that the local authorities were considering the possibility of introducing their own currency to replace the Ukrainian hryvnia.

Karaman said that the national currency was one of the basic features of every independent state, also noting that the Donetsk and Luhansk republics should have different currencies due to the differences in taxes and budgets.

In mid-November, Ukrainian President Petro Poroshenko issued a decree for Ukrainian banks to cease providing service to accounts of enterprises and residents in southeastern Ukraine within the period of one month.

Residents of Donetsk and Luhansk regions in eastern Ukraine formed self-proclaimed people's republics following a February coup in Kiev. Since April, the Donetsk and Luhansk militias have been fighting Kiev government forces.