Foreign exchange transactions regime changes

11/ 04/ 2022

On 4 April 2022, the Boards Resolution No. 68 of the National Bank of Ukraine came into force to amend Resolution No. 18 of the Board of the National Bank of Ukraine dated 24 February 2022 (Operation of the Banking System under the Martial Law). The amendments are primarily designed to ensure the defensive capabilities of the State, to prevent capital outflows and to avoid macroeconomic imbalance. From now, individuals are allowed to, among other things, transfer foreign exchange to purchase a number of goods abroad subject to a monthly limit of UAH 400,000 (in an equivalent foreign currency amount). This includes the purchase of body armour vests, safety helmets, military and tactic wear or footwear, safety clothes, optical surveillance devices, unmanned aircrafts, sleeping bags, roll mats, and first aid supplies. It is also permitted to make transfers to foreign permanent establishments and branches of legal entities that are 100% owned, either directly or indirectly, by the State (except for those operating in russia and belarus). The Resolution allows for transferring foreign currency to pay pensions to Ukrainian citizens who have left the country for permanent residence (other than those who have relocated to belarus and russia). With limited exceptions, time limits have been shortened for export and import settlements from 365 to 90 calendar days (the new requirements will apply to resident transactions involving the export and import of goods with effect from 5 April 2022). The Resolution has also introduced new exceptions to the general prohibition against debit transactions in Ukrainian corporate accounts beneficially owned by russian or belarusian residents so that the relevant legal entities could pay salaries to their employees, pay taxes and other charges, and carry out certain other transactions. For more detail, please contact Partner Asters Oleksandr Onufrienko or Senior Associate Mykola Melnychuk.

On 4 April 2022, the Board’s Resolution No. 68 of the National Bank of Ukraine came into force to amend Resolution No. 18 of the Board of the National Bank of Ukraine dated 24 February 2022 (Operation of the Banking System under the Martial Law).

The amendments are primarily designed to ensure the defensive capabilities of the State, to prevent capital outflows and to avoid macroeconomic imbalance.

From now, individuals are allowed to, among other things, transfer foreign exchange to purchase a number of goods abroad subject to a monthly limit of UAH 400,000 (in an equivalent foreign currency amount). This includes the purchase of body armour vests, safety helmets, military and tactic wear or footwear, safety clothes, optical surveillance devices, unmanned aircrafts, sleeping bags, roll mats, and first aid supplies.

It is also permitted to make transfers to foreign permanent establishments and branches of legal entities that are 100% owned, either directly or indirectly, by the State (except for those operating in russia and belarus).

The Resolution allows for transferring foreign currency to pay pensions to Ukrainian citizens who have left the country for permanent residence (other than those who have relocated to belarus and russia).

With limited exceptions, time limits have been shortened for export and import settlements from 365 to 90 calendar days (the new requirements will apply to resident transactions involving the export and import of goods with effect from 5 April 2022).

The Resolution has also introduced new exceptions to the general prohibition against debit transactions in Ukrainian corporate accounts beneficially owned by russian or belarusian residents so that the relevant legal entities could pay salaries to their employees, pay taxes and other charges, and carry out certain other transactions.

For more detail, please contact Partner Asters’ Oleksandr Onufrienko or Senior Associate Mykola Melnychuk.