The National Bank of Ukraine (“NBU”) approved Regulation No. 33 dated 13 April 2017 (“Regulation”) amending certain current NBU’s existing currency control restrictions.
Pursuant to the Regulation, the Ukrainian companies are allowed to purchase foreign currency in order to pay dividends distributed between 2014 and 2016 to their foreign shareholders. The total amount to be paid may not exceed USD 5 million per calendar month.
The requirement for the mandatory use of a documentary letter of credit in order to perform the advance payments for the imported goods or services now applies to foreign trade contracts with total value not exceeding USD 5 million or its equivalent in other currency.
This requirement does not apply to the importation of oil, natural gas, non-irradiated fuel elements, electricity, gasoline, fuel oil, diesel fuel oil, military goods and services and any other goods purchased by Ukrainian importers using the funds borrowed from international financial institutions (such as EBRD, IFC etc.) or received pursuant to international treaties of Ukraine.
It is expected that the Regulation will further improve the business environment in Ukraine.