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NATIONAL BANK OF UKRAINE SOFTENED REGIME OF CURRENCY REGULATION UNDER PRODUCT SHARING AGREEMENTS
DLA Piper Ukraine, Kyiv, Ukraine, Tue, Nov 11, 2014
On8 November 2014 Resolution of the National Bank of Ukraine No. 712* came intoeffect. This Resolution facilitated the regime of currency regulation for transactionsmade by foreign investors or their representative offices within the territoryof Ukraine under product sharing agreements.
Inparticular, investors and their representative offices are not subject to thefollowing currency control restrictions:
- mandatory debiting of currency proceeds from export transactions under product sharing agreements no later than within 180 days after the date of custom declaration;
- mandatory obtaining of competent authorities' conclusions required to perform import transactions under product sharing agreements, which provide for deferred delivery exceeding 180 days following the date of custom declaration;
- mandatory submission of full information on export / import transactions under product sharing agreements to the banks;
- mandatory obtaining of individual licences of the National Bank of Ukraine for certain types of transactions with currency values under product sharing agreements;
- mandatory obtaining of registration certificates of the National Bank of Ukraine for attraction of credits and loans in foreign currency under product sharing agreements as well as compliance with the maximum interest rate cap established for external borrowings;
- mandatory price evaluation of contractual prices for works, services, intellectual property rights under the transactions related to product sharing agreements provided that such transaction price exceeds EUR 50 000.
Inaddition, the amendments simplified the procedure of sale and exchange offoreign currency by investors and their representative offices for the purposesof performance of product sharing agreements including the transactions onpurchase of equipment, materials, assets and other goods, works, repayment ofcredit indebtedness (including interest, commissions/ fees, default interestand penalties etc.).
Wehope that the above information will be helpful for you. Please do not hesitateto contact us, should you have any questions.
* The Resolution of National Bank of Ukrainedated 6 November 2014 No. 712 "On Introduction of Changes to CertainLegislative Acts of the National Bank of Ukraine".
