The National Bank of Ukraine  is preparing to lift a ban on foreign exchange purchases and transfers to undertake transactions on returning dividends to foreign investors abroad. The ban was approved by NBU Board Resolution No.140 of 3 March 2016 On Resolving the Situation in the Money and Foreign Exchange Markets of Ukraine.  On 26 April 2016, the regulator sent an email (No. 25-0005/36769) to banks requesting the latter to collect information from their clients about their intention to repatriate dividends abroad.

The following economic agents will be allowed to repatriate dividends abroad:  

• foreign investors (if such transactions are carried out through an investment account);
• issuers of equity rights/shares/investment certificates on which dividends are paid (if an issuer purchases/transfers foreign currency abroad);
• a depository institution that handles a securities account of a foreign investor (depositor) and executes transactions involving the payment of dividends on securities abroad.  

Every client may choose one bank through which the purchase of foreign currency and payment of dividends will occur.  If a client attempts to pay out dividends through several banks, this client will be denied permission to carry out this transaction.  

In their turn, banks will be required to collect and submit to the NBU by 20 May 2016 the following information:

• personal details of a person that intends to purchase/transfer foreign currency to make dividend payouts abroad;
• the authorized bank;
• period for which dividends are paid, year;
• total amount of dividends due to a foreign investor (foreign investors, UAH (for fill-in purposes, currency conversion shall be carried out  at the official hryvnia exchange rate against foreign currencies set by the NBU on 26 April 2016).

 Based on the information on intended dividend payments, the NBU will set a schedule for dividend payments. Dividend payments in foreign currency abroad shall be made in a gradual manner throughout a certain period.  

The NBU intends to lift a ban on the repatriation of dividends from Ukraine and set a schedule for dividend payments following the successful completion of the second review under the Extended Fund Facility Arrangement with the IMF.