The National Bank mitigated currency restrictions again

June 7, 2016 the National Bank of Ukraine approved the Decree № 342 “On the settlement of the situation in the monetary and foreign exchange markets of Ukraine” (hereinafter – the “Regulation”), according to which continues a gradual mitigating the regime of currency regulation in Ukraine.

Thus, according to the provisions of the Regulation:

• lowered from 75% to 65% the limit of the mandatory sale of revenues from abroad to accounts in foreign currency;
• twice increased the purchase limit of cash currency – from 6 to 12 thousand UAH per day;
• twice increased the issuance limit (receipt) cash from current and deposit accounts in foreign currency or banking metals – from 50 to 100 thousand UAH per day;
• abolished the restrictions on the volume of cash in national currency, which still amounted to 500 thousand UAH per day.

In addition, the Resolution established limiting sizes and conditions for foreign currency transfers. For transfers that do not exceed the equivalent of 15 thousand UAH per day, can be performed without confirming documents and do not require the account opening. If the transfer of foreign currency exceeding the equivalent of 15 thousand UAH, it can be done only with the current account on the basis of supporting documents. But the amount of such transfers can not exceed the equivalent of 150 thousand UAH for a month.

No less important in the Resolution of the National Bank is a permission to repatriation of dividends accrued to foreign investors for the years 2014-2015. Limits established on transferring funds abroad for one person per month in the amount of 1 million USD or 10% of the total amount of dividends payable abroad. But if the 10% dividends amount to more than 5 million USD (equivalent), the maximum amount of repatriation of dividends during a calendar month may not exceed 5 million USD (equivalent).

In the Decree stated that buy and transfer foreign currency for the payment dividends abroad can depository institution that caters the accounts of a foreign investor, the issuer of corporate rights and shares, according to which the dividends are paid either directly to foreign investors. With that, dividends which were accrued over the period to 2014 and for 2016 are not allowed to repatriate.

This Regulation entered into force on 9 June and in regard to the payment of the dividends to foreign investor – from June 13 and will run until 14 September.