On 12 May 2014, the National Bank of Ukraine (the “NBU”)passed Regulation No. 270 “On Change of Payment Terms under Transactions ofExport and Import of Goods and Implementation of Compulsory Sale of ForeignCurrency Proceeds” (the “Regulation No. 270”), which became effective on 20 May2014.

The Regulation No. 270 aims to ensure the furtherstability of the foreign exchange market in Ukraine and extends the followingrestrictions and limitations previously imposed by NBU Regulation No. 453,dated 14 November 2013:

1.    The 90-day term of payment under export andimport transactions;

2.    The requirement for the mandatory sale of 50%of the total sum of foreign currency proceeds from abroad to legal entities andentrepreneurs; and

3.    The requirement for the mandatory sale offoreign currency receipts from abroad to individuals (both resident andnon-resident) in the amount that equals or exceeds the equivalent of UAH150,000 per month.

The Regulation No. 270 remains in effect until 20 August2014.

Legislation:

1. Regulation of NBU“On Change of Payment Terms under Transactions of Export and Import of Goodsand Implementation of Compulsory Sale of Foreign Currency Proceeds” No. 270,dated 12 May 2014; and

2. Regulation of NBU“On Indicating of Amount of Compulsory Sale of Foreign Currency Proceeds” No.271, dated 12 May 2014.

Authors:

DanielBilak, Managing Partner, daniel.bilak@cms-cmck.com

VictoriaKaplan, Senior Associate victoria.kaplan@cms-cmck.com

Tetiana Mykhailenko,Lawyer, tetiana.mykhailenko@cms-cmck.com