NATIONAL BANK OF UKRAINE PROHIBITED DEPOSITS AND LENDING IN RUSSIAN RUBBLES

DLA Piper Ukraine, Kyiv, Ukraine, 
Wed, Nov 5, 2014

On3 November 2014 the National Bank of Ukraine adopted Resolution*, called toregulate issues of application of Ukrainian currency legislation within theterritory of free economic zone “Crimea”. However, changes introduced by theResolution also affected conduction of certain currency transactionon the rest of Ukraine's territory.

Inparticular, the National Bank prohibited conduction of the followingtransactions in Russian rubbles:

• attraction of deposits under bank deposit agreements, as well as increase of amounts deposited before the Law** came into effect and prolongation of the above agreements;
• provision of loans, including overdraft loans, as well as prolongation of term of the loan or its portion under the agreement, executed before the Law** came into effect.

Theabove Resolution also established other particularities ofapplication of currency legislation during temporary occupation of Crimea'sterritory. 

Wehope that the above information will be helpful for you. Please do not hesitateto contact us, should you have any questions.

*The Resolution of the National Bank of Ukraine dated 3 November 2014 No. 699“On Application of Particular Provisions of Currency Legislation Duringthe Regime of Temporarily Occupation on the Territory of Free Economic Zone"Crimea”, which comes into effect on 5 November 2014.

**The Law of Ukraine "On Establishment of Free Economic Zone"Crimea" and Particularities of Economic Activity within TemporarilyOccupied Territory of Ukraine" No. 1636-VII dated 12 August 2014.