NBU measures 

On March 2, 2022 the Board of the National Bank of Ukraine (the NBU) issued Resolution No. 30, which amends Resolution No. 18 “On Operation of the Banking System under Martial Law.” 

Resolution 30 simplifies currency control requirements (no underlying documents need to be reviewed by servicing banks).

It is now possible to withdraw foreign currency; however, not more than the equivalent of UAH 30,000 (approx. US$1,000), with the following exceptions:

1. Businesses and institutions that ensure implementation of the government’s mobilization plans (objectives) and entities that have a special permit from the NBU are exempt from this limit.
2. Bank branches located in territories under the threat of occupation by the Russian military may withdraw foreign currency above this limit if the branch manager approves it.

It is also prohibited in Ukraine to use any electronic means of payment (including transfers, settlements and cash withdrawals) issued by international participants of payment systems operating in the Russian Federation or Republic of Belarus. 

Please also see our alert with details of the NBU restrictive measures here.

Under NBU Resolution No. 23, dated February 25, 2022, the NBU will not impose sanctions on banks for breaches of prudential standards, open currency position limits and deadlines for statistical reporting; or on banking groups for regulatory capital adequacy requirements, economic liquidity standards or credit risk, if such violations occurred from February 24, 2022 onward and were caused by the negative impact of the military aggression against Ukraine by the Russian Federation.

Updates on the capital markets

The National Securities and Stock Market Commission (the NSSMC) has implemented the following changes concerning capital markets operations in Ukraine:

1. Decision of NSSMC No. 137, dated February 28, 2022, allows investment firms that have the status of a primary dealer to carry out operations with government military bonds (international code UA4000221436) on the secondary market.
2. Decision No. 138, dated March 1,  2022, allows investment firms to conduct operations with other government securities (identification code UA4000225668) on the secondary market. Depository institutions may also open new accounts in these securities. The NBU also expanded the list of transactions that can be performed by clients in the system of depository accounting of government securities (through the Depository of the NBU).
3. Decision No. 139, dated March 2, 2022, suspends certain procedural actions in respect of violations of the laws in respect of (i) consumer rights protection; (ii) capital markets and organized commodity markets, (iii) anti-money laundering and (iv) accumulative pension provision systems.

The submission deadlines of reports by capital market participants has been extended until after hostilities have ceased.

Seizure Law

On March 3, 2022 the Parliament of Ukraine adopted the Law “On the Basic Principles of Compulsory Seizure in Ukraine of Objects of Property of the Russian Federation and Its Residents” (the Seizure Law).  According to the text of the draft Law, the forcible seizure of property of the Russian Federation and its residents in Ukraine is carried out with no compensation (reimbursement) for its value, in response to the Russian invasion of Ukraine.  The official text of the Seizure Law has not been published yet. Once we know the official text we will follow up with analyses of the law and the potential implications on creditors’ rights.