The NBU has prolonged currency control restrictions

PwC, Kyiv, Ukraine, 
Wed, Dec 3, 2014

Published by U.S.-Ukraine Business Council (USUBC)
Wash, D.C., Wed, Dec 3, 2014

On 1 December 2014 the NationalBank of Ukraine (the “NBU”) issued  Resolution No. 758*, which comes intoforce today, 3 December 2014. 

With this Resolution, the NBU has prolonged the effective currency restrictionsfor another 3 months (till 3 March 2015).

In particular, the followingimportant currency control restrictions will  continue to apply:
 
• 75% mandatory sale of all foreigncurrency proceeds.
• Limitations on purchase of hardcurrency by individuals (UAH 3,000 per day).
• A ban on the following transactionsin foreign currency:

      -Payments under import and export transactions exceeding 90 calendar days.
      -Early repayment of loans, as well as the conclusion of supplements on thereduction of payment terms.
     
      - Most settlements based on previously issuedindividual licences of the NBU.
      -Offset of mutual claims under foreign trade agreements.
      -Remittance of funds to foreign investors due to:              
             a. proceeds from the sale of corporate rights (except shares),
             b. the sale of Ukrainian securities outside the stock exchange(except state bonds),              
             c. payment of dividends(except from securities traded on  the stock exchange).

We will keep you updated onfurther developments.

* Resolutionof the NBU No. 758 dated 1 December 2014.

 
Contacts:

Ron Barden, Partner & TLS Leader, ron.j.barden@ua.pwc.com
Rob Shantz, Head of Legal Services, rob.shantz@ua.pwc.com
Andrey Pronchenko, Legal Director, andrey.pronchenko@ua.pwc.com
Alexey Katasonov,Senior Attorney, alexey.katasonov@ua.pwc.com