Ukrainian Currency Control Regulations Move Towards Liberalisation

The National Bank of Ukraine allows for the pay-out of dividends to foreign investors and eases a range of currency control regulations.

Following last month's developments, the National Bank of Ukraine in Decree #342 on 8 June 2016 gave the green light for the following:

• A reduced threshold for the mandatory sale of foreign currency; now 65% from 75%
• Dividends payable for year 2014-2015 to be paid to foreign investors abroad.

This is obviously very welcome news for foreign investors, local entities and Ukrainian nationals. The positive commodities price trend and increasing flow of foreign currency into the Ukrainian economy has allowed the National Bank to gradually lift restrictions put in place two years ago, to address the economic crisis.