Putin: companies, banks fearful of Crimea sanctions can now calmly enter peninsula

MOSCOW. March 17 (Interfax) - After the latest round of Western sanctions against Russia, Russian companies and banks now need not fear any restrictions due to doing business in Crimea, Russian President Vladimir Putin said during a meeting on the socio-economic development of Crimea and the Sevastopol.

"Yes, of course, the development of the peninsula's economy is affected by Western sanctions, which apply to the banking sector, the supply of a number of goods and so on. After the start of the military operation in Ukraine, a new package of sanctions followed," he said.

"The restrictions imposed against Russia, of course, create a lot of problems, but they not only create problems, but also open new opportunities for us, among other things, all the conditions have now taken shape for large Russian business entities, which, frankly speaking, used to fear some sanctions measures. Now they have nothing to fear. Now they can easily enter the peninsula, including, by the way, banks, and operate actively, roll out their business there, opening and claiming new market niches," Putin said.

"We will definitely support such business activities, including through the deployment of banking and financial services infrastructure. In this regard, one of our leading financial institutions with 100% state ownership is Promsvyazbank , it is in principle already present on the peninsula, but the institution should start operating in Crimea as quickly and as widely as possible. We need to introduce promising product lines, lend to agriculture, construction, tourism and other key industries for the region, open branches and subsidiaries here and develop the retail network," he said.