Resolution No. 49 of the Board of the National Bank of Ukraine dated 6 February 2014 (the “Resolution”) 

The Resolution places a number of restrictions on foreign exchange transactions. In particular, the Resolution imposes a temporary ban on purchases of foreign currency for the purpose of early repayment by residents of credits and loans in foreign currency under agreements with non-residents; for formation of actuarial reserves made by insurers; for making foreign investments by residents. Accordingly, payments under such transactions must be made from the payer’s own foreign currency funds (remaining on accounts after the mandatory exchange of a portion of foreign currency proceeds). 

Furthermore, banks are obliged to fulfill orders of clients (legal entities and individual entrepreneurs) contained in the payment document in any currency only to the extent of the funds on the client’s current accounts as of the beginning of the transaction day. Based on the wording of this rule, overdraft payments will become unavailable. 

Banks may buy foreign currency by order of resident and non-resident individuals with a view to transfer abroad under current non-commercial foreign currency transactions only in amounts not exceeding the equivalent of UAH 50,000 (fifty thousand hryvnias) per month per individual. This restriction does not apply to the payment of costs related to education, medical treatment, transport costs, burial costs among others. 

In order to purchase foreign currency by order of legal entities and individual entrepreneurs, banks are obliged to credit the funds in hryvnias to a separate account from which these funds may be transferred for purchasing foreign currency not earlier than on the sixth business day after the hryvnias have been credited to that account.

The Resolution takes legal effect as of 7 February 2014 and shall be valid until the National Bank of Ukraine passes a separate decision.