National Bank of Ukraine mitigates previously established restrictions on certain foreign exchange transactions on May 11, 2016. Thus, in the decision NBU number 308 of May 5, 2016 “On amendments to some legal acts of the National Bank of Ukraine” (hereinafter – the “Decree № 308”), it is assumed that now the company does not need to sell in foreign currency received for foreign investment in Ukraine. So this operation does not apply to the requirement for compulsory sale of funds in foreign currency at a rate of 75 percent as it was before. This rule will be in effect until June 8, 2016.
Also the Decree number 308 reduced time for operations to reserve funds authorized banks in the national currency and for the transfer of funds in national currency on correspondent accounts of foreign banks from four to three business days. So now inclusive of the June 8, 2016 the National Bank of Ukraine will confirm the information within 3 days that the competent authorized banks in foreign exchange transactions will make the register.
Besides this lifted the ban on the purchase of foreign currency funds for the products that had been imported to Ukraine before January 01, 2015, provided that there was a replacement of the part in the undertaking. We must bear in mind that only the transfer of funds in the national currency is permitted – the national currency in favor of non-residents through the correspondent account of a foreign bank opened with authorized Ukrainian bank.
According to the National Bank of Ukraine these steps will contribute increase of the cash flows to Ukraine as well as improving the conditions for settlement in the performance of foreign currency contracts without creating imbalances in the market.