On September 1, the unrecognised Luhansk republic has started paying salaries and pensions in Russian rubles.
Pensions in the Russian currency had been already paid in the areas controlled by separatists, but these payments were pegged to the Ukrainian hryvnia. Now, the Russian ruble is the main currency in the separatist republic. Its authorities took such decision on August, 18.
In August, the share of the Russian ruble on the foreign exchange market of the self-proclaimed Luhansk People’s Republic reached 85%, Russian news agency RIA Novosti says.
Separatist-controlled areas of Luhansk region are suffering a deep economic crisis, which is confirmed even by data published by LPR strongmen: e.g., at the moment there are only 3,000 miners in the so-called republic. In January 2014, their number was about 63,000.
