BANKING SYSTEM LUHANSK PEOPLE'S REPUBLIC
During the outbreak of the armed conflict in Ukraine, in April 2014 Lugansk declared its independence, calling its territory the Luhansk People's Republic. To date, the republic is an unrecognized state, since at the moment it has not received recognition from at least one UN member state. In this regard, a deep socio-economic transformation is taking place on the territory of the unrecognized republic. The reform process is accompanied by increasing crisis phenomena on all sides of the socio-economic life of the republics. The difficulties of reformation are caused, first ofall, by active hostilities, migration of the population, lack of opportunity to provide their products to the world society, thereby losing the chance to develop and attract investment flows.