On 22 September 2014, the National Bank of Ukraine (the "NBU") issued Regulation No. 591 (the "Regulation") which becomes effective on 23 September 2014. Under the Regulation, the NBU temporarily prohibits certain foreign currency transactions, including:
- payments under import transactions which do not provide for goods to enter Ukraine;
- repatriation of funds realised by foreign investors on the sale of securities, outside of the stock exchange, that are issued by Ukrainian entities (other than Ukrainian government bonds);
- repatriation of funds realised by foreign investors through the sale of corporate rights in Ukrainian entities (other than shares);
- repatriation of dividends paid to foreign investors (other than dividends paid by listed joint-stock companies); and
- transactions authorised by individual NBU licences (other than opening and depositing funds into bank accounts abroad).
According to the NBU, the above restrictions are preventive and will be in place until the negative factors affecting the Ukrainian foreign currency market are minimised.
Legislation: NBU Regulation "On Amendments to Certain Regulations of the National Bank of Ukraine" No. 591 dated 22 September 2014