Resolution No.160 was adopted to replace the earlier “anti-crisis” Resolution of the NBU No. 758 dated 01 December 2014, as amended, that expired on 3 March 2015. As a general matter, the Resolution prolongs the previously effective anti-crisis measures and introduces several new restrictions.

The prolonged measures include, among others, the following:

  • The mandatory sale of 75% of foreign currency proceeds received from abroad by legal entities (except banks), individual entrepreneurs, and foreign representative offices (except for official (diplomatic) representative offices).
  • The restriction on cross-border payment of dividends to foreign investors.
  • The restriction on early repayment under loan agreements between Ukrainian borrowers and foreign creditors (subject to certain exceptions).

Among the new restrictions, we note the following:

  • Banks are prohibited from providing loans in national currency (including prolongation of previously provided credit lines), if such loans are secured by pledges of funds in foreign currency.
  • With certain exceptions, banks are prohibited from purchasing foreign currency for clients (except for private persons), that have their own foreign currency funds (either on current bank accounts or deposit accounts in banks).
  • Additional documents must now be provided for purchase/payments in foreign currency exceeding USD 50 000. In particular, for import operations, these include a certificate from the State Fiscal Service of Ukraine confirming no indebtedness in respect of tax payments.
  • Banks are prohibited from the purchase and transfer of foreign currency to foreign investors in certain cases concerning the return of capital (e.g. a decrease of a company’s charter capital or the foreign investor’s withdrawal as a participant / shareholder in a company).
  • Certain restrictions have been introduced in respect of transactions for the purchase of precious metals.

Resolution No. 160 remains in force until 3 June 2015. Resolution No. 161 also introduces certain changes to existing restrictions regarding currency operations. In particular, Resolution No. 161 lowers the threshold for obtaining a price evaluation act for the payment of services abroad from the previous threshold of EUR 50,000 to EUR 25,000.