On 28 July 2016, the National Bank of Ukraine (the “NBU
”) issued Regulation No. 361 (“Regulation No. 361
”) amending certain existing NBU’s Regulations. Regulation No. 361 is part of the on-going liberalisation of capital controls by the NBU ultimately aimed at improving the business environment in Ukraine.
Simplified Export/Import Transactions
The timeframe for export and import transactions is increased from 90 days to 120 days. Thus, where payment by a Ukrainian party is made in advance for goods/services to be imported to Ukraine, the delivery of those goods/services to Ukraine must take place within 120 calendar days after the date of payment. Where delivery of goods/services from Ukraine (export) has been made, the payment to a Ukrainian party must occur within 120 calendar days after the delivery date.
Simplified Pre-payments for Imports
A requirement for mandatory use of a documentary letter of credit to make any advance payments for import of goods/services under a foreign commercial contract now applies to those foreign commercial contracts the total value of which exceeds USD 1 million or the equivalent in other currency (as compared to the USD 500,000 threshold applied before).
Regulation No. 361 became effective on 29 July 2016.
Legislation: Regulation of the National Bank of Ukraine “On Introducing the Amendments to Certain Regulations of the National Bank of Ukraine” No. 361 dated 28 July 2016.