With effect from 14 April 2017, the National Bank of Ukraine (“NBU”) allowed foreign investors to repatriate their dividends accrued in 2016. The NBU retained a monthly cap for payment of dividends, however, it was simplified and set at the level of USD5 million per calendar month. 

Furthermore, the NBU permitted Ukrainian banks to make early repayment of foreign currency loans to:

• foreign banks with at least “A3” / “A-” rating by Fitch Ratings, Standard & Poor’s, or Moody’s under their cross-border loans with such banks
• any foreign lender under their Eurobond-funded cross-border loans

In addition, the NBU increased the threshold for mandatory use of letters of credit to make advance payments under Ukrainian resident’s import contracts.  Use of a letter of credit confirmed by investment grade bank will now be mandatory for advance payments under import contract with a total value exceeding USD5 million (instead of USD1 million threshold that was previously applicable).

With effect from 5 April 2017, the NBU reduced the requirement for mandatory foreign currency sale from 65% to 50%.

At the same time, the other temporary currency restrictions previously introduced by the NBU remain in place.

Additional notes

For further information on the topic please contact Mykola Stetsenko, Managing Partner, Glib Bondar, Senior Partner, Dmytro Marchukov, Partner, or by telephone +380 44 591-3355 or via e-mail.