The National Bank of Ukraine (NBU) has made yet another relaxation of its foreign exchange regulations and eased restrictions concerning the purchase of foreign currency by local businesses.
Banks seem to face difficulties in implementing their digital transformation projects due to the regulatory restrictions directly or indirectly applicable to cloud computing. This publication represents the initial results of Baker McKenzie’s Kyiv office ongoing research of potential regulatory obstacles for a bank to migrate into a cloud environment leveraging market survey conducted during spring this year.
The National Bank of Ukraine has updated its foreign exchange regulations and eased certain restrictions concerning transactions with Eurobonds issued by Ukrainian companies in foreign markets.
This handbook Conducting Business in Ukraine 2021 has been prepared by the attorneys of Baker McKenzie’s Kyiv office as a general guide for companies operating or considering investing in Ukraine. It is intended to present an overview of the key aspects of the Ukrainian legal system and the regulation of business activities in the country
By Decision No. 34 dated 21 January 2021 (“Decision No. 34”), the National Securities and Stock Market Commission of Ukraine (“Securities Commission”) adopted a new regulation on the admission of securities of foreign issuers for circulation in Ukraine. Decision No. 34 came into effect on 6 April 2021 and replaced the existing regulation, which was adopted in 2012.
On 16 January 2021, the National Bank of Ukraine (NBU) introduced a specific oversight regime with respect to compliance of Ukrainian banks with data protection and cybersecurity requirements. Banks will now be subject to either remote or “on-site” inspections in these areas. In addition, banks will be required to submit their respective annual self-assessment reports. The template report form, approved by the NBU, indicates that banks will have to disclose all of their “cloud” and “outsourcing” projects with third-party vendors.
The Ukrainian market is seeing an increased amount of emerging partnerships between banks and technology companies. Such collaboration arrangements have now attracted the regulator’s attention. Accordingly, banks and their technology vendors should dedicate more care to the regulatory aspects of their cooperation (and related technology transactions), to ensure a smooth oversight experience.
The new oversight regime aims to implement the evolving regulatory framework for data protection and cybersecurity in the banking industry. According to its Fintech Strategy 2025, the NBU will also adopt bespoke rules for banks governing IT outsourcing and cloud projects by the end of 2022 and 2024, respectively.
In an effort to help expand opportunities for businesses and individuals to hedge currency risks, the National Bank of Ukraine has updated its foreign exchange regulations and eased certain restrictions concerning derivative transactions.
Starting from 17 January 2021, Ukrainian banks are permitted to exchange Ukrainian hryvnia (UAH) for foreign currency under forward transactions with all their clients.
On 31 July 2020, the President of Ukraine has signed the long-awaited law of Ukraine No. 810 “On Amendments to Certain Laws of Ukraine related to Improvements of the Terms of Support for Production of Electricity from Renewables Energy Sources” (“Law”).
Effective from 1 August 2020, the adjusted Feed-in-Tariff rates will apply to the renewable energy projects (“REP”) in Ukraine. To see the Feed-in-Tariff (“FiT”) rates please follow the link here.
For the REPs commissioned before 30 June 2015, the FiT cap of EUR 24.56 KW/h will apply.
WPPs with up to three wind turbines (irrespective of the capacity) are not any longer eligible for FiT.
On 21 July 2020, Ukraine’s parliament, the Verkhovna Rada of Ukraine, passed in the first reading a Draft Law No. 3760 “On State Support for Investment Projects with Significant Investments” (“Draft Law”). The Draft Law was proposed by the President of Ukraine as part of his investment promotion agenda and is aimed at enabling state support for major investments in Ukraine.
On 28 April 2020 the Law of Ukraine “On Prevention and Counteraction to Legalization (Money Laundering) of the Proceeds of Crime or Terrorism Financing, as well as Financing of the Proliferation of Weapons of Mass Destruction” (Law on Financial Monitoring) enters into force and will replace the current law. The…