Effective as of 23 September 2014, the National Bank of Ukraine (the “NBU”) has amended certain restrictions aimed at stabilisation of the situation on Ukrainian foreign exchange market, which were introduced by the NBU in the end of August – beginning of September 2014 and formalised by Resolutions of the NBU no. 515 dated 20 August 2014 (the “Resolution 515”) and no. 540 dated 29 August 2014 (the“Resolution 540”).

Further Restrictions on Foreign Currency Transactions

The NBU has restricted carrying out of the following money transfers out of Ukraine:

• transfers by foreign investors of funds obtained as a result of OTC sale of Ukrainian local securities (other than Ukrainian state bonds) or sale of ownership interests in legal entities (other than shares);
• transfers by foreign investors of dividends (with exception of dividends received under shares traded on Ukrainian stock exchanges);
• transfers of funds on the basis of individual licences issued by the NBU (with exception of NBU licences for placement of funds on foreign bank accounts);
• payments for goods imported without physical delivery of such goods to the territory of Ukraine; and
• payments for imported goods cleared by Ukrainian customs authorities (if such payment is to be made more than 180 days after the date of relevant customs declaration).

Such further restrictions shall, together with Resolution 540, remain in effect until 2 December 2014.

Changes in FX Mandatory Sale Requirement

The NBU has liberated the FX mandatory sale restriction by lowing the volume of FX revenues subject to mandatory sale from 100 per cent. to 75 per cent. Accordingly, 75 per cent. of all FX revenues (subject to certain exceptions) for the benefit of legal entities (either resident of non-resident) and private entrepreneurs in Ukraine (as well as money transfers into foreign bank account of Ukrainian residents opened on the basis of the NBU licence) denominated in the foreign currencies of the first group of foreign currencies classifier1 and in RUB shall remain subject to FX mandatory sale requirement.

The amended FX mandatory sale requirement shall, together with Resolution 515, remain in effect until 21 November 2014.

Amended FX Purchase Restrictions for Individuals

The NBU has toughen a restriction providing for limitation of amount of cash foreign currency which Ukrainian banks are allowed to sell to an individual per banking day. According to the amended Resolution 540, each Ukrainian bank will not be able to sell to an individual cash foreign currency in the amount exceeding the equivalent of UAH 3,000 per one banking day.

Such restriction will not apply to purchases by individuals of foreign currency for the purposes of repayment of their obligations under the foreign currency loans obtained from Ukrainian banks in the amount not exceeding the amount of such payment obligations.

The amended restriction shall, together with Resolution 540, remain in effect until 2 December 2014.

1 The first group of foreign currencies classifier currently includes such currencies as, among others, USD, EUR, GBP, JPY and CHF.