Ukraine: NBU has liberalised restrictions on certain foreign currency transactions

CMS Cameron McKenna, 
Kyiv, Ukraine, Mon, Nov 3, 2014

On 22 September 2014, the National Bank of Ukraine (the "NBU")issued Regulation No. 591 (the "Regulation") which becomeseffective on 23 September 2014. Under the Regulation, the NBU temporarilyprohibits certain foreign currency transactions, including:

1. Payments under import transactions which do not provide for goods toenter Ukraine;

2. Repatriation of funds realised by foreign investors on the sale ofsecurities, outside of the stock exchange, that are issued by Ukrainianentities (other than Ukrainian government bonds);

3. Repatriation of funds realised by foreign investors through the saleof corporate rights in Ukrainian entities (other than shares);

4. Repatriation of dividends paid to foreign investors (other thandividends paid by listed joint-stock companies); and

5. Transactions authorised by individual NBU licences (other thanopening and depositing funds into bank accounts abroad).

According to the NBU, the above restrictions are preventive and will bein place until the negative factors affecting the Ukrainian foreign currencymarket are minimised.

Legislation: NBU Regulation "OnAmendments to Certain Regulations of the National Bank of Ukraine" No. 591dated 22 September 2014 

Authors:

Vyacheslav Ovechkin,Senior Associate, Vyacheslav.Ovechkin@cms-cmck.com

Tetyana Mykhailenko,Lawyer, Tetyana.Mykhailenko@cms-cmck.com