The National Bank of Ukraine (NBU) brought its requirements in line with the decision of the National Security and Defense Council of Ukraine (NSDC) On Imposing and Lifting Personal Special Economic and Other Restrictive Measures (Sanctions) dated 2 May 2018 that was introduced by Decree of the President of Ukraine No. 126/2018 dated 14 March 2018.
Specifically, in compliance with paragraph 4* of this Decision, the NBU continued implementing the NSDC sanctions imposed on banks, non-banking institutions, national postal operators, and payment institutions.
Furthermore, the regulator has approved recapitalization of Ukrainian banks that were subject to sanctions by parent institutions registered in accordance with foreign law. Thus, the Ukrainian subsidiary banks under sanctions avoid being classified insolvent due to capital inadequacy, since this can impose an additional burden on the Deposit Guarantee Fund and the budget of Ukraine.
Respective amendments were approved by NBU Board Resolution No. 55 On Amendments to NBU Board Resolution No. 654 dated 1 October 2015 dated 24 May 2018. The amendments shall take effect on 25 May 2018.
*Paragraph 4 of the NSDC Decision of 2 May 2018 assignes the Cabinet of Ministers of Ukraine together with the Security Service of Ukraine and the NBU to implement and monitor effectiveness of personal special economic and other restrictive measures (sanctions) imposed on persons, as set out in the Annexes to this NSDC Decision.