On 19 July 2012 the National Bank of Ukraine (the "NBU") passed a resolution No. 308 (the "Resolution") amending the Regulation On Procedure and Conditions of Foreign Currency Trade. The Resolution was registered by the Ministry of Justice of Ukraine on 9 August 2012 and enters into force upon official publication.

New Rules

The Resolution restricts the business entities' ability to buy foreign currency on a single importation contract through accounts opened with different banks and, therefore, select the bank with the most attractive exchange rate for currency conversion purposes. In its turn, acquisition of foreign currency under the agreements on delivery of goods that are subject to customs clearance at Ukraine's state border will be possible only upon obtainment of the customs authorities' confirmation of delivery of the consignment. The purpose of relevant amendments is to increase the banks' scrutiny over the importation operations and preclude conclusion of fictitious contracts not resulting in actual supply of goods to Ukraine.

Background

Ukraine has faced an excessive deficit of foreign currency since the end of last year. Ukrainian authorities therefore have addressed a series of measures to restrict the flow of foreign banknotes outside Ukraine and increase domestic foreign currency reserves. For these purposes Ukrainian Parliament allowed denomination of government domestic loan bonds in foreign currency and settlements under cross-border contracts in Ukrainian hryvnia without obtainment of the NBU's individual license (please follow the Link 1 and Link 2 to see Asters' legal alerts of 22 December 2011). Additionally, on 25 July 2012 the NBU submitted a bill for Parliament's consideration to reinstate mandatory surrender of export proceeds.

For further information please contact senior partner Armen Khachaturyan partner and associate Oleksiy Demyanenko