The new Resolution No. 410 "On Resolving the Situation in the Money and Foreign Exchange Markets of Ukraine" approved by the Board of Directors of the National Bank of Ukraine (the "NBU") dated 13 December 2016 extended the existing temporary currency restrictions. Most of these restrictions will be in force until cancellation, however some are due to expire earlier.
The following restrictions imposed by the NBU remain in effect:
- Mandatory sale of 65% of export proceeds in foreign currency received by Ukrainian counterparties. This requirement will automatically expire on 15 June 2017
- Limitation period of 120-day rule for conducting settlement under export and import contracts. This limitation shall also expire on 15 June 2017
- Ban on early prepayment of cross-border loans made available by non-residents
- Dividends may be paid out to investors for the period of 2014 to 2015 only. The thresholds amounts for dividends' payout remains unchanged
- Set off restrictions under export agreement
The NBU does not add any additional exemptions, therefore, the abovementioned restrictions are subject to the same thresholds and exemptions as set out in previous NBU Regulation No 386.
For further information, please contact the authors, or your usual DLA Piper contact.