On 14 November 2017 the National Bank of Ukraine approved the Regulation 112 “On Amendments to NBU Regulation 410 dated 13 December 2016 (“NBU Regulation 112”). With effect from 15 November 2017, it provides further liberalisation of the regulations on dividends distribution to foreign investors and earlier repayment of cross-border loans. In particular, the amendments introduced by the Regulation 112 remove the restrictions that prevented the companies to complete their liquidation and thus exit the market.

Distribution of dividends for the period up to the year 2016 (inclusive) is allowed

The purchase and transfer abroad of foreign currency is now allowed for the payment of dividends accrued not only in the years 2014 to 2016, but also for any year up to the year 2016 inclusive. At the same time, depending on a year for which dividends are paid, different limits for the amount of foreign currency that can be purchased and transferred by a company paying dividends apply, namely:

  • for dividends accrued for the period before and including 2013 - USD 2 million monthly cap;
  • for dividends accrued for the period 2014-2016 - USD 5 million monthly cap;

As before, the purchase must be done (i) by the company paying dividends (issuer), a foreign investor (shareholder/participant of the issuer) or a depository institution of the issuer and (ii) through one authorised bank only (changing the authorised bank is subject to certain conditions).

More options for early repayment of cross-border loans

Regulation 112 adds one more exemption from the restriction on the early repayment of cross-border loans established by the NBU. The resident borrowers undergoing liquidation are not allowed to make early repayment of loans received from non-resident lenders. Such early repayment of loans shall be permitted only in the priority order of satisfaction of creditors’ claims as determined by Ukrainian legislation.

The other exceptions where the early repayment of cross-border loans is allowed can be found in our previous law-now on the issue.


The Regulation of the Board of the National Bank of Ukraine No. 112 dated 14 November 2017 “On Amendments to NBU Regulation No. 410 dated 13 December 2016


Anna Pogrebna ,Partner, anna.pogrebna@cms-rrh.com

Andriy Sydorenko , Associate, andriy.sydorenko@cms-rrh.com

Vitaliy Radchenko , Partner, vitaliy.radchenko@cms-cmno.com

Kateryna Chechulina , Senior Associate, kateryna.chechulina@cms-cmno.com