On December 13, 2016 the National Bank of Ukraine ( the “NBU”) issued a resolution*, extending most of the effective currency control restrictions in place today, including:
 

  • The settlement period for import-export transactions in foreign currency remains limited to the current 120 days;
  • 65% of foreign currency proceeds received by legal entities are subject to mandatory conversion into local currency (UAH);
  • Owners of corporate rights/shares (i.e. foreign shareholders of Ukrainian companies) are still entitled to repatriate dividends for 2014-2015 within set limits**.

The resolution becomes effective on December 16, 2016. It will remain valid until it is rescinded by the NBU. The provisions on 120 days import/export transaction settlement period and mandatory conversion of foreign currency proceeds are set to expire on June 16, 2017.

We will continue to monitor the developments and keep you updated on the issue.

*The NBU Resolution No. 410 dated December, 13 2016
** Flash Report #14 dated June 9, 2016
Contacts:

Camiel van der Meij, Partner & TLS Leader, camiel.van.der.meij@ua.pwc.com
Andrey Pronchenko, Partner, Tax and Legal Services, andrey.pronchenko@ua.pwc.com
Alexey Katasonov, Director, Tax and Legal Services, alexey.katasonov@ua.pwc.com

75 Zhylyanska Street | Kyiv | Tel:  +380 44 354 0404 | Fax: +380 44 354 0790 | pwc.ukraine@ua.pwc.com |  www.pwc.com/ua 

This flash report is produced by PricewaterhouseCoopers’ tax and legal services department. The material contained in this alert is provided for general information purposes only and does not contain a comprehensive analysis of each item described. Before taking (or not taking) any action, readers should seek professional advice specific to their situation. No liability is accepted for acts or omissions taken in reliance upon the contents of this alert.
© 2016 Limited liability company «PricewaterhouseCoopers». All rights reserved. PwC refers to the Ukrainian member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

We will be sending additional Flash reports as issues arise.  If you do not wish to receive these Reports, please advise by return e-mail (pwc.ukraine@ua.pwc.com).  Alternatively, if there is someone else in your company to whom we should send our Alerts, please let us know.

We are pleased to inform that this Flash report is also available in Ukrainian and can be sent to you upon request.
Ми раді повідомити, що цей  Flash report також доступний українською мовою і може бути наданий Вам за запитом.