NewResolution No. 758 of the Board of the National Bank of Ukraine dated 1December 2014 (the “Resolution”) enters into force as of 3 December 2014. ThisResolution was adopted to replace the earlier “anti-crisis” Resolution of theNBU No. 540 dated 29 August 2014, as amended, which now expires.

The Resolution prolongs the effect of number of temporary restrictionson currency exchange transactions and other transactions in the currencymarket—introduced earlier by the NBU—as well as introduces several newrestrictions.  Among others, the Resolution introduces the followingchanges:

·        New exceptions were introduced with respect to the rule, which prohibitsearly repayment under the loan agreements between Ukrainian borrowers andforeign creditors. Now this rule doesn’t extend to the cases of early paymentsunder the loan agreements, which are to be concluded in respect of the existingloan agreements and under which the later repayment date is foreseen.

·        The issue of the inscribed savings (deposit) certificates nominated innational or in foreign currency is permitted with a term of circulation notless than six months. Meanwhile the issue of the bearer’s savings (deposit)certificates remains suspended.

·        The previously imposed restrictions, with respect to the transactions inforeign currency, are extended with some amendments. In particular, it isprohibited to settle payments on the basis of the individual licenses issued bythe National Bank of Ukraine. This is not applicable to settlements under theindividual licenses issued by the National Bank of Ukraine to legal entitiesfor placement of currency valuables at off-shore accounts and for payments inforeign currency outside of Ukraine by the resident-guarantor (surety) inrespect of the obligations, secured by the guarantee (suretyship) under theloan agreement provided by the international financial organization or foreignexport credit agency.

Pleasenote that all of the above restrictions are in effect until 3 March 2015.

Contact Info:

Natalia Selyakova

Partner

Dentons, Kyiv office

Т: +380 44 494 4774

E: natalia.selyakova@dentons.com