NBU has relaxed exchange controls

11.07.2022

 

With effect from July 9, 2022,the National Bank abolished the concept of critical imports goods1. This enables businesses to buy foreign currency and transfer funds for import of any goods.

 

At the same time, cross-border payments in foreign currency for services remain restricted unless the payment is made for services expressly set out in the list approved by CMU. 2 We generally note that the list of permitted services has been significantly expanded and, in particular, includes leasing (renting) transport, repair of mechanisms, as well as consulting (including legal advice), information, certification and audit services. Even participation in the Bridal Fashion exhibition is allowed.

 

In addition, the National Bank of Ukraine has extended the term for settlements under export and import operations from 120 to 180 days. The extension applies retrospectively to all export and import transactions starting from April 5, 2022. Please note that a 365 day term still applies to all export and import operations which commenced prior to 5 April 2022.

 

From July 11, 2022, the National Bank of Ukraine has obliged entities to use and pay the foreign currency within two (2) business days once such currency have been purchased. Previously, entities were allowed to keep the purchased currency at the account up to ten (10) business days. The restriction does not apply where the currency is bought to make payments relating to national security and defence, work of diplomatic missions and consular institutions of foreign countries in Ukraine, certain activities of law-enforcement bodies.

[1] the NBU Board Resolution dated July 7, 2022 No. 142 "On Amendments to the NBU Board Resolution dated February 24, 2022 No. 18"

[2] list of permitted services prescribed in the CMU Resolution of July, 07, 2022 No 761