5 June 2015
Legal Alert: Further Extension of the Restrictions of the National Bank of Ukraine Aimed at Stabilisation of the Situation on Ukrainian FX Market

The National Bank of Ukraine (the “NBU”) has adopted resolution No.354 dated 3 June 2015 (the “Resolution 354”) aimed at stabilisation of the situation on Ukrainian FX market. According to the Resolution 354, the NBU has generally extended all of the restrictions introduced (or extended) by the NBU in March 2015 (as amended). The Resolution 354 shall be effective as of 4 June 2015 until 3 September 2015.

At the same time, the NBU has slightly modified some of its previously introduced restrictions, in particular the following:

FX Purchase Restrictions

The NBU has slightly liberated the prohibition for Ukrainian banks to purchase FX funds upon instructions of their clients (other than private individuals) if such clients hold their own FX funds on bank accounts with Ukrainian banks. Until 4 June 2015, such restriction did not apply if amount of clients’ funds was below the threshold amount of USD 10,000. As of 4 June 2015, the NBU increased such threshold amount to USD 25,000. As before, certain funds shall not be taken into account in calculating such threshold amount. All other FX purchase restrictions remained unchanged.

Withdrawal of Cash Funds

The NBU has also liberated the restriction whereby Ukrainian banks should limit the withdrawal of cash funds in UAH. The amount of such limitation increased from 150 000 UAH per one day per client to 300,000 UAH. All other limitations on withdrawal of cash funds (as well as applicable exceptions) remained unchanged.

Apart from the Resolution 354, on 3 June 2015 the NBU adopted another resolution[1] (the Price Resolution”) whereby the NBU has slightly liberated the procedure for making payments outside of Ukraine under contracts for works, services, IP rights, etc. In particular, the threshold amount of payments under said contracts triggering the requirement to obtain a price evaluation act was increased from EUR 25,000 to EUR 50,000. The Price Resolution shall be effective as of 4 June 2015 and is not limited in time.

[1] Resolution of the NBU’s Management Board dated 3 June 2015 No.355 “On Introduction of Amendments to the Resolution of the Management Board of the National Bank of Ukraine dated 30 December 2003 No.597”