On 12 June 2017, the larger parts of the Resolutions of the Management Board of the National Bank of Ukraine (NBU) No. 41 dated 25 May 2017 and No. 51 dated 8 June 2017, amending the Resolution of the NBU Management Board on Addressing the Situation in the Money, Credit and Foreign Exchange Markets in Ukraine No. 410 dated 13 December 2016 came into effect. Resolutions No. 41 and No. 51 have substantially relaxed some burdensome exchange control restrictions in place in Ukraine since as late as August 2014 and thus marked significant progress in the way that Ukraine will administer cross-border investments going forward.

Repatriation of foreign equity investments

A non-resident investor may now repatriate its equity investment into a Ukrainian company upon the sale of its shares, the decrease of the company’s charter capital or the investor’s withdrawal from the company, in an amount not exceeding USD 5 million per calendar month. In April 2017, the NBU also permitted foreign investors to repatriate dividends accumulated in 2016, in an amount not exceeding USD 5 million per calendar month.

Prepayment of cross-border loans

While at present Ukraine generally restricts prepayments by Ukrainian borrowers of non-resident loans, the list of exceptions from this rule has been continuously growing since November 2014. Going forward, a Ukrainian borrower may prepay not only a loan made available by an international financial institution such as the EBRD and IFC, but also a loan extended by any other foreign lender to the extent it has the benefit of a guarantee or a stand-by letter of credit issued by a Ukrainian or non-resident bank backed by an international financial institution.

A Ukrainian borrower may now prepay such a loan in an amount corresponding to the amount of the respective risk-sharing instrument provided by the international financial institution. In April 2017, the NBU also permitted Ukrainian bank borrowers to prepay loans extended by foreign bank lenders rated at least A3/A- by either of the major rating agencies, as well as loans funded by means of the placement of debt securities outside Ukraine.

Acquisition of foreign assets

Subject to a permit issued by the NBU, Ukrainian legal entities are now allowed to make an investment into offshore assets, including shares of a foreign company, in an amount not exceeding USD 2 million per calendar year. Earlier, the amount of such investment was limited to USD 50,000 per calendar month.