On 3 December 2014 the new Resolution* of the National Bank of Ukraine (the "NBU") comes into effect, which prolonged the recent restrictions aimed at Ukraine's foreign exchange market regulation. Thus, now the following restrictions affecting monetary and foreign exchange Ukrainian markets remain effective:

Mandatory sale of foreign currency proceeds

As before, the requirement for mandatory sale applies to 75% of foreign currency proceeds received from abroad. The Resolution provides for exhaustive list of exclusions from the requirement for mandatory sale of foreign currency proceeds.

The 90 days rule

The NBU uphold 90 days period for performing payments under the export and import transactions of residents of Ukraine.

Set-off under export transactions

Banks are not allowed to release from control the client's export transactions on the basis of documents on termination of obligations due to set-off.

Prohibition of premature repayment of loans

Residents are prohibited from making premature repayment of loans (financial aid) in foreign currency, including by way of execution of any additional agreements to loan (financial aid) agreements that parties may enter into. This prohibition applies to the principal, as well as to other payments under such agreements. However, the premature repayment of loans by means of funds borrowed under the other loan agreement with non-resident of Ukraine, with maturity date later than initial loan agreement has, is allowed.

Restrictions relating to currency in cash

The NBU left unchanged previously established limits on sale of foreign currency in cash, transfer of foreign currency abroad and disbursement of national and foreign currency in cash.

Premature return of deposit

Banks are allowed to prematurely return foreign currency deposits under all types of the agreements, excluding deposits attracted with the issuance of registered savings (deposit) certificates for a period of circulation for at least six months in the national currency at the purchase rate of the authorized bank as of the day of operation.

Prohibition of foreign currency transactions

The NBU did not extend the list of transactions in foreign currency which are not allowed at the moment (see Newsletter of DLA Piper Ukraine dated 3 October 2014).