On 14 September 2016, the National Bank of Ukraine (the "NBU"), by its Resolution No. 3861, extended certain "extraordinary" capital control and foreign exchange restrictions until 15 December 2016 and eased some of the existing measures effective from 15 September 2016.

The following are the most notable changes and extended measures introduced by the NBU:

(1) Cash Transactions Limits

A limit on cash withdrawals in foreign currency was set at an equivalent of UAH 250,000 (c. USD 9,500) per day instead of the previous limit of an equivalent of UAH 100,000 (c. USD 3,800) per day.

At the same time, the limit for foreign currency purchase by individuals, which was set at an equivalent of UAH 12,000 (c. USD 455) per day in one bank, remains in place.

(2) Certain Transactions of Resident Companies

Resident companies that hold more than USD 25,000 on their foreign currency accounts are now permitted, subject to certain conditions, to purchase additional foreign currency for timely discharging of their payment obligations under cross-border loans.

(3) Foreign Currency Transactions of Individuals

For purposes of fighting the outflow of capital from the country, the NBU prohibited individuals from making cross-border foreign currency payments on the basis of individual payment licences issued by the NBU.

(4) Continuing Restrictions

Notwithstanding the foregoing, numerous of the restrictions that were introduced earlier by the NBU still remain effective, including the following:

• the mandatory sale by Ukrainian banks of 65 percent of foreign currency proceeds received by Ukrainian businesses from abroad;

• the limits on the amount of dividends that foreign investors can repatriate from Ukraine;

• the prohibition of early repayment of cross-border loans, subject to certain exceptions;

• the restrictions on set-offs under export agreements, subject to certain exceptions;

• the prohibition for banks to extend hryvnia loans secured by pledges of funds in foreign currency;

• the prohibition on purchasing foreign currency for corporate clients of Ukrainian banks that have foreign currency funds in their bank accounts, subject to certain exceptions; and

• the prohibition on purchasing foreign currency and transferring it to foreign investors in connection with the sale of shares/corporate rights in Ukrainian companies as well as on repaying capital abroad upon liquidation of a Ukrainian company or decrease of its share capital, subject to certain exceptions.

Please refer to our previous legal alert for further information on the rest of the contingency measures of the NBU, most of which remain unchanged, by following the link.