The National Bank of Ukraine has streamlined and supplemented the rules designed to ensure the efficient operation of the banks when executing transactions involving the Crimean business entities, which were introduced by NBU Board Resolution No. 699, dated November 3, 2014 "On the application of specific provisions of the foreign exchange legislation during the regime of temporary occupation of the territory of the free economic zone "Crimea" (hereinafter – Resolution No. 699).

Based on the analysis of the practical implementation of the rules introduced by Resolution No. 699, taking into account the remarks and proposals articulated by the banking community, on December 16, 2014, the Board of the National Bank of Ukraine passed Resolution No. 810  amending Resolution No. 699 (hereinafter – Resolution No. 810), which:

• defines a resident of Ukraine as an individual who is a domestically displaced person having the certificate as prescribed by the applicable Ukrainian laws that certifies the residence of such individual on the mainland Ukraine;
• stipulates that for the purposes of identification of a domestically displaced individual the residence address shall be the place of such person’s residence within Ukraine;
• establishes that payments  between legal entities, sole proprietors incorporated in mainland Ukraine (hereinafter referred to as the legal entities), and the Crimean business entities under current trading operations shall be carried out in foreign currency and/or Ukrainian Hryvnia;
• allows legal entities to purchase foreign exchange under current trading operations in accordance with the procedure prescribed by the NBU regulation governing the procedure, terms and conditions for foreign exchange purchase, including if registers of customs entries contain the data about the import of goods from the territory of free economic zone “Crimea” (hereinafter referred to as FEZ “Crimea”) and the release of goods into free circulation on the mainland Ukraine;
• allows individuals being Crimea’s business entities to deposit cash both in foreign exchange and Ukrainian Hryvnia on  an account in order to repay debt due to the bank under a loan agreement without the documents confirming the origin of the funds;
• settles an issue related to the closure of accounts held by the Crimean business entities and transfer of funds from accounts of such business entities to their accounts opened outside Ukraine; 
• allows banks to exchange Russian roubles received to settle the borrower's (the Crimean entity's) obligations under the loan agreement for foreign exchange in which the loan is denominated;
• determines that registration of loan agreements concluded by the Crimean business entities with non-residents is invalidated; thus, banks cease servicing such agreements;
• determines that documents, decisions issued by the bodies of the Russian Federation and illegal bodies established within the territory of FEZ “Crimea” with regard to the Crimean business entities and their activities are invalid and cannot be used by the banks when transacting operations of the Crimean business entities, taking measures on foreign exchange control and financial monitoring.

Resolution No. 810 shall come into effect from the day following the day of its official publication.

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