Recent developments in Ukrainian currency regulations

As part of the implementation of its currency liberalization policy, the NBU has simplified currency oversight over compliance with the deadlines for payments for some cross-border operations.

Effective as of May 16, 2019[[1]](https://www.integrites.com/publications/recent-developments-in-ukrainian-currency-regulations/#_ftn1) no statutory time limits (currently – 365 days) shall apply to payments under the following foreign economic operations:

✓ Import of goods pursuant to contracts under state defense orders;

✓ Import of services or medicines under the agreements of the Ministry of Health of Ukraine with specialized organizations, as well as import of services for the treatment of people with rare (orphan) diseases;

✓ Import of goods used for the manufacturing of space and aircraft equipment and aggregates;

✓ Export-import of goods in the framework of production-sharing agreements;

✓ Export of works, services (except transport and insurance services and works) and intellectual property rights.

In addition, in the operations for the export of goods, the NBU allowed Ukrainian banks to close their currency oversight after the bank’s letter of credit has been paid (previously – only after the non-resident buyer had transferred the contract price to the resident seller’s local current account).

The above change was one of the steps on the path of currency liberalization proclaimed and implemented by the NBU since 2018. Additionally, on May 7, 2019, the NBU adopted changes to its effective regulations increasing the limit on the repatriation of dividends from EUR 7,000,000 to EUR 12,000,000 per month[[2]](https://www.integrites.com/publications/recent-developments-in-ukrainian-currency-regulations/#_ftn1). The NBU continues declaring that the said limit is planned to be completely cancelled in the future.

To recap, on February 6, 2019, the NBU also decreased the amount of foreign currency proceeds subject to obligatory sale from 70% to 50%, and starting from March 1, 2019 – to 30%[[3]](https://www.integrites.com/publications/recent-developments-in-ukrainian-currency-regulations/#_ftn1). According to the NBU, the gradual complete abolition of the obligation is planned.

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[1] NBU Resolution  “On setting exceptions and (or) features of implementing of mandatory terms for payments in

export and import transactions and changes to some laws and regulations” No. 67 dated May 14, 2019

[2] NBU Resolution “On Amendments to the Provisions on Protection Measures and Determining the Procedure for the Execution of Certain Transactions in Foreign Currency” No. 66 dated May 7, 2019

[3] NBU Resolution, “On Protection Measures and Determining the Procedure for the Execution of Certain Transactions in Foreign Currency” No. 35 dated February 6, 2019

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This newsletter should not be used as an instruction for taking legal advice in any particular case.

If you have any questions, you are welcome to contact:

Igor Krasovskiy

Partner

Igor.Krasovskiy@integrites.com

Tel.: +38 (044) 391 38 53