March 7, 2018

The National Bank of Ukraine (the NBU) continues to liberalize currency control rules by adopting Resolution No. 12 dated 15 February 2018 (effective from 16 February 2018) and Resolution No.19 dated 1 March 2018 (effective from 3 March 2018).

The following new rules are introduced:

• In addition to other grounds provided in the NBU regulations, Ukrainian borrowers are now allowed to prepay FX cross-border loans in the amount not to exceed US$2 million per month
• Repatriation of dividends abroad is extended for the period through 2017 inclusive (previously only until 2016)
• The limit for repatriation of dividends abroad was increased to US$7 million per month (previously US$2 million for repatriation of dividends for the period before 2013 and for 2014-2016 – US$5 million)
• FX proceeds under cross-border loans used for the purposes of refinancing existing indebtedness of Ukrainian borrowers under other cross-border loans are excluded from mandatory FX sale requirements
• Ukrainian banks are now allowed to attract loans denominated in UAH, payments which are made in FX only (so called “synthetic loans”) from any foreign lender. Previously Ukrainian banks were only allowed to obtain such loans from international financial institutions. Cross-border payments under such loan agreements do not require the registration / individual license from the NBU.