By its Resolution No. 78 dated 18 June 2019, the National Bank of Ukraine (the “NBU”) has cancelled mandatory sale of foreign currency proceeds for (conversion into) UAH. The foregoing Resolution took effect on 20 June 2019.

During the previous five years the NBU has been gradually reducing the percentage of foreign currency revenues which were subject to mandatory conversion into UAH from 100% introduced at the end of 2013 to the lowest level of 30% which was applicable from 1 March 2019 until 20 June 2019.

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Under Ukrainian law the NBU is entitled to introduce mandatory requirements as to sale of all or a portion of foreign currency received by Ukrainian legal entities and individual entrepreneurs under export transactions. Despite this relaxation, the NBU will generally be able to re-introduce mandatory conversion of foreign currency at any time in future in case of any economic developments which can potentially have an adverse effect on Ukraine’s macro financial stability.