The National Bank of Ukraine has extended the currency restrictions to May 17, 2014

On November 14, 2013 the Board of the National Bank of Ukraine adopted two Resolutions to be valid during 6 months until May 17, 2014 - the documents renewal rules of currency restrictions which were introduced in autumn 2012 and later renewed in spring 2013.

In particular, the Resolution No.453 extended the rule on terms of payments on import-export operations payments that shall be done in the period up to 90 calendar days.

Another Resolution No.457 stipulates the requirements for obligatory sale in the interbank market 50% of income in foreign currency (USD and EUR). This rule applies in the case of receipt of foreign currency from abroad by:

• legal entities (except banks);
• sole proprietors;
• foreign representative offices (except for official representative offices);
• on the accounts of authorized banks which were launched for maintenance of joint activity without establishing a legal entity;
• on the accounts of residents that were opened outside of Ukraine.

The rule will not apply to the mandatory sale in the following situations: 1. funds received by the State or based on State guaranties; 2. for loans or credits in accordance with Ukrainian international treaties; 3. by programs of international technical assistance; 4. on the accounts of resident agents or under an agreements of commission, agency, consignment, which are subject further reinsurance.

Please be aware that the temporary restrictions on currency calculations may be established by the National Bank for 6 months (according to the Law of Ukraine "On the Procedure of Payments in Foreign Currency"). However, the National Bank of Ukraine had already established three times such limits. We have not any information on claim regarding legitimacy of such restrictions.