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ONCE AGAIN, NBU EASES ADMINISTRATIVE RESTRICTIONS IN THE FOREIGN EXCHANGE MARKET National Bank of Ukraine continues to move towards the liberalization of the foreign exchange market and gradually moderates administrative measures that were implemented in 2014-2015 in order to stabilize the monetary and foreign exchange markets of Ukraine. This is confirmed by Resolution № 342 “On Settlement of the Situation in the Money and Foreign Exchange Markets of Ukraine”, which was approved by the NBU Board on June 7, 2016. With the entry into force of the Resolution № 342, the amount of foreign currency earnings of legal entities and individual entrepreneurs, subject to mandatory sale, shall reduce. From now onward 65% of foreign currency income is subject to mandatory sale (previously the ratio was 75%). The bank sells foreign currency income without the client’s order and no later than the next business day after the date of crediting to the clearing account. In addition, the National Bank allows to carry out the repatriation of dividends on corporate rights or shares to foreign investors for the period of 2014-2015. The return of the dividends abroad can be made by: · the issuer of corporate rights or shares on which the dividends are paid; · the depository institution serving the securities account; · the foreign investor directly. However, the NBU Board set the maximum amount of dividends that a person can return overseas within a calendar month, amounting to USD 1 mln (or equivalent in other foreign currency) or 10% of the total amount of dividends that shall be/were subject to return overseas by the person. If these 10% of total dividends represent more than USD 5 mln (or equivalent in other foreign currency), the maximum amount of the repatriation during the calendar month may not exceed USD 5 mln (or equivalent in foreign currency). Also, the NBU Board increased the maximum amount of cash foreign currency sales or precious metals sales by one person in one operational (business) day from UAH 6 000 to UAH 12 000 in corresponding equivalent. The changes introduced by the Resolution, except for the changes in the repatriation of dividends, take effect on June 9, 2016 and remain in force until September 14, 2016 inclusive. The rules on the repatriation of dividends on corporate rights or shares to foreign investors for the period of 2014-2015, take effect from 13 June 2016 onward.
NEWS OF ANTIKA LAW FIRM Partners of Antika Law Firm Alexey Kot and Andrey Kuznetsov were recognized by international ranking Best Lawyers 2017 Best Lawyers, a respected peer review guide to the legal profession worldwide, has published a list of recommended lawyers and law firms by practices and regions. This year Managing partner of Antika Law Firm Alexey Kot was selected by the peers for inclusion in the Seventh Edition of Best Lawyers in Ukraine in the practice areas of Competition / Antitrust Law and Real Estate Law. Partner of the Firm Andrey Kuznetsov was included in the list of recommended lawyers of Best Lawyers in Ukraine 2017 edition in the field of Litigation. _____________________________________________________________ This Legal Alert is intended as a general overview of latest changes in legislation of Ukraine and does not constitute a legal advice. For further information please contact Antika Law Firm: 12, Khreschatyk Str., 2nd floor, Kyiv, 01001, Ukraine tel./fax: +38 044 390 09 20/21 |
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