Separatists in Ukraine adopt the US dollar
The breakaway People’s Republic of Lugansk (LNR) says it will honor the US dollar, along with the Russian ruble and Ukrainian hryvnia, as official currencies. LNR leader Igor Plotnitsky announced on February 26 that the separatist enclave will use “whatever currencies suit [its] needs.”
“Due to the fact that Ukraine refuses to lift the economic blockade [against the separatist-controlled east], despite our readiness to end it, conditions in Ukraine have deteriorated to such an extent that anything on the shelves in the stores of the biggest cities is snatched up immediately. With this in mind, we have decided to adopt a multi-currency system in Lugansk,” said Plotnitsky.
The People’s Republic of Lugansk is one of two separatist enclaves in eastern Ukraine. The other is the People’s Republic of Donetsk (DNR). Since the spring of 2014, pro-Russian militia have fought an armed rebellion against Ukrainian troops. Throughout the conflict, the United States and Western Europe have supported the new government in Kiev that replaced the ousted Yanukovych regime.