From 19 November 2012 the National Bank of Ukraine has

-       introduced the mandatory sale of 50 per cent of foreign currency proceeds for currencies in the 1st group of the Classifier of Foreign Currencies and the Russian Ruble; and

-       reduced the term of settlement under export and import transactions from 180 to 90 calendar days.

The above requirements will be in place for a period of six months.

The mandatory sale of foreign currency proceeds will be initiated by the responsible bank (without the need for a client’s instruction) not later than the next business day after their receipt.

All residents exporting goods, works or services must receive the proceeds from export operations within 90 days from the date of customs clearance of goods or from the date of the execution of act or other document on performance of works or services (for export of works or services). Similarly, residents of Ukraine importing goods, works or services under advance payment terms must receive such goods, works or services within 90 calendar days from the date of making an advance payment or issuing a bill to the non-resident supplier of goods, works or services.

These changes came about when, on 16 November 2012, Law of Ukraine No. 4580-VI “On Amendments to Certain Legislative Acts of Ukraine on Increased Control over Monetary Markets”, dated 6 November 2012, came into force.  Under this law the National Bank of Ukraine received the right to require the mandatory sale of a part of foreign currency proceeds and change the terms of settlements under export and import transactions for a period of up to six months.

The same day the National Bank of Ukraine adopted two Resolutions, No. 475 “On a Change of the Terms of Settlements under Foreign Economic Contracts and Introduction of the Mandatory Sale of Foreign Currency Proceeds” and No. 479 “On Establishing the Amount of Mandatory Sale of Foreign Currency Proceeds” introducing the changes described above.

Additional notes

This LEGAL ALERT is issued to inform Baker & McKenzie clients and other interested parties of legal developments that may affect or otherwise be of interest to them. The comments above do not constitute legal or other advice and should not be regarded as a substitute for specific advice in individual cases.

Currencies of the 1st group of the Classifier of Foreign Currencies include US Dollars, British Pounds, Euros, Canadian Dollars, Swiss Francs etc.