In addition to previous measures aimed at stabilizing the Ukrainian currency market, the NBU with its Resolution No. 540 dated 29 August 2014 (Resolution No. 540) has introduced new mechanisms to depress the demand for foreign currency in Ukraine and promote strengthening of UAH.

In particular, Resolution No. 540 sets the following restrictions for foreign currency transactions:

– ban on early repayment under loan agreements between Ukrainian borrowers and foreign creditors;

– foreign cash may be sold to one person within one business day only in the amount not exceeding the equivalent of UAH 15 000 within one bank;

– an individual may transfer foreign currency abroad under current currency non-trading operations:

• without any confirming documents from the current foreign currency account or without opening such account – in the amount not exceeding the equivalent of UAH 15 000 within one business day. Individuals – non-residents may transfer money only based on documents confirming the source of funds;

• from the current foreign currency account – in the amount exceeding the equivalent of UAH 15 000 but not more than UAH 150 000 per month. Individuals-residents may perform such transactions only based on confirming documents.

The Resolution No. 540 contains an exhaustive list of transactions which are not subject to these restrictions;

– withdrawing cash in UAH at cash desks or ATMs is permitted in the amount up to UAH 150 000 per day for one client;

– early return of foreign currency deposits is permitted only in national currency at the exchange rate of the authorized bank on the transaction day;

– withdrawing cash in foreign currency from current or deposit accounts at cash desks or ATMs is permitted in the amount not exceeding the equivalent of UAH 15 000 per day for one client at the official exchange rate of the NBU.

This requirement applies to cash withdrawals in Ukraine or abroad irrespectively of the number of client's accounts opened with one bank;

– in order to purchase foreign currency on the interbank exchange market funds in UAH shall be previously transferred to a separate analytical account of a bank, from which they may be 1 Legal Alert / Arzinger / www.arzinger.ua

transferred for exchange purposes not earlier than the third operational day after crediting the

funds to such account;

– withdrawing cash in Ukraine using electronic payment means (cards) issued by residents or nonresidents

shall be performed only in UAH;

– foreign currency transferred from abroad to an individual (either resident or non-resident)

without opening an account (e.g. via Western Union) shall be paid out only in UAH.

Resolution No. 540 became effective on 2 September 2014 and remains in effect till 2 December 2014.

We would be happy to answer any of your questions on banking activity in Ukraine, should the need arise.

Kind regards,

Oleksander Plotnikov, Counsel

Oleksander.Plotnikov@arzinger.ua