Effective as of 23 September 2014, the National Bankof Ukraine (the “NBU”) has amended certain restrictions aimed atstabilisation of the situation on Ukrainian foreign exchange market, which wereintroduced by the NBU in the end of August – beginning of September 2014 andformalised by Resolutions of the NBU no. 515 dated 20 August 2014 (the “Resolution515”) and no. 540 dated 29 August 2014 (the “Resolution 540”).

Further Restrictions on Foreign CurrencyTransactions

The NBU has restricted carrying out of the followingmoney transfers out of Ukraine:

*         transfersby foreign investors of funds obtained as a result of OTC sale of Ukrainianlocal securities (other than Ukrainian state bonds) or sale of ownershipinterests in legal entities (other than shares);

*         transfersby foreign investors of dividends (with exception of dividends received undershares traded on Ukrainian stock exchanges);

*         transfersof funds on the basis of individual licences issued by the NBU (with exceptionof NBU licences for placement of funds on foreign bank accounts);

*         paymentsfor goods imported without physical delivery of such goods to the territory ofUkraine; and

*         paymentsfor imported goods cleared by Ukrainian customs authorities (if such payment isto be made more than 180 days after the date of relevant customs declaration).

Such further restrictions shall, together withResolution 540, remain in effect until 2 December 2014.

Changes in FX Mandatory Sale Requirement

The NBU has liberated the FX mandatory salerestriction by lowing the volume of FX revenues subject to mandatory sale from100 per cent. to 75 per cent. Accordingly, 75 per cent. of all FX revenues(subject to certain exceptions) for the benefit of legal entities (eitherresident of non-resident) and private entrepreneurs in Ukraine (as well asmoney transfers into foreign bank account of Ukrainian residents opened on thebasis of the NBU licence) denominated in the foreign currencies of the firstgroup of foreign currencies classifier[1] and in RUBshall remain subject to FX mandatory sale requirement.

The amended FX mandatory sale requirement shall,together with Resolution 515, remain in effect until 21 November 2014.

Amended FX Purchase Restrictions forIndividuals

The NBU has toughen a restriction providing forlimitation of amount of cash foreign currency which Ukrainian banks are allowedto sell to an individual per banking day. According to the amended Resolution 540,each Ukrainian bank will not be able to sell to an individual cash foreigncurrency in the amount exceeding the equivalent of UAH 3,000 per onebanking day.

Such restriction will not apply to purchases byindividuals of foreign currency for the purposes of repayment of theirobligations under the foreign currency loans obtained from Ukrainian banks inthe amount not exceeding the amount of such payment obligations.

The amended restriction shall, togetherwith Resolution 540, remain in effect until 2 December 2014.

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[1] Thefirst group of foreign currencies classifier currently includes such currenciesas, among others, USD, EUR, GBP, JPY and CHF.