Ukraine: Update on the situation
Clearstream Banking's1 depository, the National Bank of Ukraine and cash correspondent bank in Ukraine, JSC Citibank, remain operational. Clearstream Banking understands that the Ukrainian Ministry of Finance has signalled that it intends to continue to pay coupons and redemptions to bondholders. Considering the challenges posed by the continuing military conflict, the Ukrainian authorities intend to keep the domestic fixed income and the Ukrainian hryvnia (UAH) foreign exchange markets closed until further notice, opening the fixed income market only for new issues of government bonds and for the tapping of existing bonds.
In this context, the extraordinary disruption caused by the military conflict does not permit JSC Citibank to process foreign exchange SWAPs or money market placement services. Those same conditions mean that Clearstream Banking’s foreign exchange services in UAH remain suspended until further notice. JSC Citibank can in principle continue to process intra-country payment instructions but the extent of the disruption caused by the military conflict means that there can be no assurance that Clearstream Banking will be able to execute a customer payment instruction in UAH. Clearstream Banking considers that its inability to provide foreign exchange services in UAH and any failure to execute a payment instruction in UAH results from events beyond its reasonable control.
Internal against payment settlement in Ukrainian securities continues uninterrupted in currencies eligible for settlement at Clearstream Banking. However, the UAH will not be an eligible settlement currency until further notice.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.