Banking & Finance Regulatory Update. March – April 2017

The National Bank of Ukraine allows repatriation of 2016 dividends, prepayment of LPN structures and lowers mandatory FX conversion requirement

Further to unblocking repatriation of dividends for 2014 and 2015 last year, on 13 April 2017 the National Bank of Ukraine (the "NBU") allowed foreign investors to repatriate dividends accrued in 2016. Repatriation of any outstanding dividends for other years will remain prohibited. In order to mitigate a surge in demand for foreign currency, the NBU retained and modified a monthly cap on the amount of dividends allowed for conversion into foreign currency and repatriation. Such cap has been set at the level of USD 5 million (or equivalent of such amount in other currency) per month.