National Bank of Ukraine Eases Currency Limitations

    May 2017
    The National Bank of Ukraine (NBU) continues gradual liberalization of limitations on export and import transactions introduced to stabilize the situation in Ukraine’s monetary and currency markets.

    In particular, on 25 May 2017, NBU enacted new Resolution No. 411 regarding Ukraine’s monetary and hard currency market that provides for the following major changes:

    1. Term for payments under export-import transactions is extended to 180 calendar days from the former 120 calendar days.
    2. Foreign investors may transfer abroad their funds received from the sale of securities and corporate rights, due to the reduction of charter capital of a legal entity and/or withdrawal from a legal entity, subject to the following conditions:
      • Return of such funds is performed by a resident (a purchaser of the securities or corporate rights, a legal entity which charter capital has been reduced, a broker, etc.) or by the foreign investor itself
      • The maximum amount of such returned funds does not exceed US$5 million per calendar month
      • All installments of such payment are made through one and the same Ukrainian bank in which the paying resident/foreign investor has a bank account (the bank may be changed by notice)

        The limitations mentioned in this paragraph will not apply to the return of funds received from the sale of government stocks or sale of debt/listed securities on stock exchanges.
    3. Residents may repay the credits/loans to non-residents early if repayment of such credits/loans is secured by international financial organizations.
    The change in paragraph 1 above came into force on 26 May 2017 and the changes in paragraphs 2 and 3 will come into force from 12 June 2017.

    We will continue to monitor and inform of changes affecting our clients. Please contact us for more detailed information.