23 October 2015
Legal alert: National Bank of Ukraine modified some of its FX Restrictions

The National Bank of Ukraine (the “NBU”) adopted Resolution No. 718 dated 22 October 2015 “On Introduction of Amendments to Resolution of the Management Board of the NBU dated 03 September 2015 No. 581” (the “Resolution 718”) which modified certain of the NBU’s restrictions introduced (or prolonged) in September 2015.

In particular, amendments introduced pursuant to Resolution 718 include the following (among others):

  • certain FX proceeds were exempted from FX mandatory sale requirement (in particular, proceeds under certain agreements between Ukraine and the European Union, grants from certain international financial organisations, security deposits from non-residents for participation in privatisation tenders);
  • prohibition of set-off has slightly been liberated and will no longer apply to set-off by telecommunication operators of payments for certain international telecommunication services;
  • exemptions from prohibition for registration by the NBU of certain amendments (substitution of borrower/lender, assignment of loan claims) to loan agreements with foreign lenders were extended to cover also cases of substitution of a lender as a result of its merger or in connection with its liquidation, as well as cases related to loan agreements executed with participation of a foreign export credit agency.

Resolution 718 entered into force on 23 October 2015 and shall remain in force until 4 December 2015.