New NBU “Anti-Crisis” Measures

Dentons, Kyiv, Ukraine, 
Thu, March 5, 2015

New Resolutions No. 160 and No. 161 ofthe Board of the National Bank of Ukraine (“NBU”) dated 3 March 2015 enter intoforce as of 4 March 2014.

Resolution No.160was adopted to replace the earlier “anti-crisis” Resolution of the NBU No. 758dated 01 December 2014, as amended, that expired on 3 March 2015. As a generalmatter, the Resolution prolongs the previously effective anti-crisis measuresand introduces several new restrictions. 

The prolongedmeasures include, among others, the following:

·        The mandatory sale of 75% offoreign currency proceeds received from abroad by legal entities (exceptbanks), individual entrepreneurs, and foreign representative offices (exceptfor official (diplomatic) representative offices).

·        The restriction on cross-borderpayment of dividends to foreign investors.

·        The restriction on earlyrepayment under loan agreements between Ukrainian borrowers and foreigncreditors (subject to certain exceptions).

Among the newrestrictions, we note the following:

·        Banks are prohibited from providingloans in national currency (including prolongation of previously provided creditlines), if such loans are secured by pledges of funds in foreign currency.

·        With certain exceptions, banksare prohibited from purchasing foreign currency for clients (except for privatepersons), that have their own foreign currency funds (either on current bankaccounts or deposit accounts in banks).

·        Additional documents must nowbe provided for purchase/payments in foreign currency exceeding USD50 000. In particular, for import operations, these include a certificatefrom the State Fiscal Service of Ukraine confirming no indebtedness in respectof tax payments.

·        Banks are prohibited from the purchase and transfer of foreign currency to foreigninvestors in certain cases concerning the return of capital (e.g. a decrease ofa company’s charter capital or the foreign investor’s withdrawal as aparticipant / shareholder in a company.)

·        Certain restrictions have been introducedin respect of transactions for the purchase of precious metals.

Resolution No.160 remainsin force until 3 June 2015.

Resolution No.161also introduces certain changes to existing restrictions regarding currencyoperations. In particular, Resolution No.161 lowers the threshold for obtaininga price evaluation act for the payment of services abroad from the previousthreshold of EUR 50,000 to EUR 25,000.

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