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In and/(or) Out Of Love/(The Registry Set)?

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Fenntucky Mike


The Ukrainian Compensation Certificates issued in the early 90's are a bit of an odd duck, not really a banknote and not really currency. The presence of them in the PMG Registry is a bit iffy but I suppose an argument can be made that they belong, although I'm not so certain that they do. 

After the fall of the U.S.S.R and Ukraine's independence, which was ratified in August of 1991 by the Central Rada of Ukraine, there was an immediate need to separate and create new financial institutions and businesses. In addition to new financial entities all businesses previously owned by the government, all businesses were owned by "The People" under the previous Communist regime, had to be "Privatized" and shares auctioned to the public. After the breakup of the Soviet Union the Ruble was in freefall and as a result all savings held in Banks and other entities were worth significantly less than when they were deposited. In a response to this a Presidential Edict (No. 138/92) was issued on March 6, 1992, revaluing all savings accounts, and increasing them by 100% based on their balance on January 2, 1992. The compensation amounts were not deposited into individuals existing savings accounts, but instead new privatization accounts were created in the newly established Savings Bank of Ukraine and held, until a time came where the National Bank of Ukraine and Ukrainian government would release them.


As it was being decided on how to distribute these funds Coupons with zeros being added every printing were circulating, inflation was still massively out of control, and a mere two plus years later on November 24, 1994 a new Edict was issued. Edict N 698/94 was, again, an effort to compensate individual Ukrainians for monetary losses due to depreciation as the funds were sitting in the Saving Bank of Ukraine. In the Edict all accounts were increased (based on their balance on January 2, 1992) 2,200%! Also, unlike previously, the money would be distributed in the form of "indexation certificates" which would be issued with a nominal value multiple of 1 million rubles (karbovantsiv), all accounts would be rounded up to the nearest multiple of 1 million. Here's the kicker, "To establish that certificates issued for the amount of indexation (hereinafter - certificates) are freely traded and used for privatization of state property, except for integral property complexes of small state enterprises, which are privatized in accordance with the Law of Ukraine.". The certificates were meant to be used to purchase shares of former state-owned businesses that were being auctioned off publicly.


I'm assuming due to public outcry a third and final Edict was issued on July 20, 1995 in which, was laid out the procedure for accrual of compensation in the institutions of the Saving Bank. People were paid their interest based on several factors which varied "depending on the use of computer technology". Also in the Edict was the nail in the coffin for the compensation certificates, accrual would only continue until August 10, 1995 after which there would be no more money added to the accounts. 


After August 10, 1995 no more funds would be added to private savings accounts and with the ratification and release of a new monetary system in August - September of 1996 I expect that most if not all compensation certificates were gone by early 1997. According to the NBU, compensation certificates in the amount of UAH 3,335 million, with a minimum face value of UAH 10 (1 million karbovantsiv), were issued. Citizens of Ukraine received 30% of the total number issued certificates (i.e., 97.3 million units). On August 25, 1996 the Hyrvnia (UAH) was adopted as the official monetary unit of Ukraine replacing karbovanets, the exchange rate was established at 100,000 : 1 (UAH 1 = 100,000 rubles (karbovanetsiv)), then on September 2, 1996 banknotes and coins were released into circulation. The privatization of Ukrainian state-owned assets continues to this day with 22 of Ukraine's 3,644 state-owned enterprises scheduled to be auctioned off in 2021. Here's a link to the large scale properties/businesses being auctioned this year. Large privatization Категорія | Privatization in Ukraine I wonder if I could place a bid or buy a few shares of a mining company with one of these still. hm  Oh, wait! Nope they expired on July 1, 1997 according to the fine print on the back of the certificates. lol


A little clarification Ukrderzhstrakh, used in the front and rear descriptions, is not gibberish, although it may look like it, lol it is an acronym for The Ukrainian State Insurance Commercial Organization. It makes more sense if seen in the Ukrainian language, Українська державна страхова комерційна організація or the acronym Укрдержстраху which translates to Ukrderzhstrakh. Yep, still looks like nonsense. :bigsmile: The insurance agency was liable for insurance clams and the payouts established prior to January 2, 1992 which had to be adjusted for inflation, similar to the savings accounts.

I'm not quite sure of the process for distributing these but there are at least three different stages of the note, remainder, issued and canceled. I imagine that you would go to a bank and withdraw the money form the savings account established for you, the bank would count out the balance in remainders and then have you sign them (or maybe the teller did) then they stamped the certificates with a that branch's ID/number. Once in hand they would then be used, at an auction presumably, then stamped again and cancel punched. Just me speculating.

1 & 2 million compensation certificates.



1,000,000 Ukrainian Karbovantsiv remainder.



1,000,000 Ukrainian Karbovantsiv issued.



1,000,000 Karbovantsiv canceled.



There are many, many stamp and signature combinations. The ink stamp typically consisted of the name of the bank on the outer band, the bank branch location and number on the inner band and an operations number in the center with the National coat of arms above. Here are a few that I have in my collection. 


So, should they be In or Out of the current registry set?

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I would tend so say In. They make me think of the Traveller's checks - not really notes or currency, but, for some odd reason they got pick numbers assigned and now I can be a little freak about collecting them. lol:roflmao:

That's cool though. Part of the demise of the old "2nd World."

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On 8/9/2021 at 10:59 PM, Revenant said:

I would tend so say In.

Once you're in you're in and it's difficult to get kicked out after that. I would agree along those lines, they are in and should probably stay in, but if starting over I would probably say no unless their was some compelling evidence that they freely circulated as day to day currency used for basic purchases. 

On 8/9/2021 at 10:59 PM, Revenant said:

They make me think of the Traveller's checks - not really notes or currency, but, for some odd reason they got pick numbers assigned and now I can be a little freak about collecting them. lol:roflmao:


Yeah, it's just so much fun to collect like this with very inexpensive notes. With prices ranging from $4 - $1 it's hard to resist the temptation to pick up a few now and then that have unique stamps. If the price was more I would be much more selective and have fewer examples. My best scores with these have been bulk purchases, sight unseen, that contained several different stamp and signature variations. I like being a little off-kilter in the way I collect these. :insane:

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