Promsvyazbank starts operation in LPR - Pasechnik

The Promsvyazbank (PSB) public joint-stock company is beginning to work in the Lugansk People’s Republic, LPR Head Leonid Pasechnik said at a meeting with PSB chairman Pyotr Fradkov.

Pasechnik and Fradkov signed an agreement on cooperation in LPR socio-economic development.

“Today, Promsvyazbank, one of the largest and influential banks of the Russian Federation, begins to work in the Republic,” Pasechnik said noting that it is an important event and benchmark for the Republic.

“The opening of your bank will provide loan opportunities to our large, medium and small businesses which will use them to develop enterprises in the region and consequently restore and develop the regional industry,” the LPR leader said.

“The Bank has begun to provide services to the population, enterprises and organizations in the people’s republics having made high quality banking services available to them,” the PSB press service reported.

As a financial partner, the Bank will participate in infrastructure and socio-economic projects, development of financial services in Donbass and providing the whole of range of banking services to the population including regular payment of pensions and allowances.

The Bank plans to start offering consumer and mortgage loans later this year, issue credit cards, acquiring, salary project services, corporate lending, including provision of guarantees and letters of credit.

“PSB aims to provide access to a broad range of banking services and assist in the economic development of each region, strengthen their financial stability, modernize commercial, industrial, transport and social infrastructure and raise the well-being and quality of life of the local population,” Fradkov said.

Earlier, the LPR parliament unanimously approved the law on the operation of the Promsvyazbank public joint stock company in the LPR territory.

On February 21, 2022, Russian President Vladimir Putin recognized the sovereignty of the Lugansk and Donetsk People’s Republics. He asked the Federal Assembly to support this decision and then ratify a friendship and mutual assistance treaty with the Donbass Republics. On the same day, Putin and LPR Head Leonid Pasechnik signed a friendship, cooperation and mutual assistance treaty between Russia and the Lugansk People’s Republic. *i*s